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Communications-related Headlines for 3/15/2000

MERGERS
Reporters Try on Many Hats in Chicago News Experiment (NYT)
Telecommunications Merger Act of 2000 (House)

EDTECH
Program Trains Teachers in Cross-Border Sharing of
Knowledge (CyberTimes)
Online Education to Be Free (WP)

PRIVACY
Europe and U.S. Reach Data Privacy Pact (CyberTimes)
With So Much Subscriber Data, AOL Walks a Cautious Line on
Privacy(WSJ)

INTERNET
'Horse Race' On Fiber Optics Speeds Up (SJM)
Gilmore Signs Bill On Software (WP)

TELEVISION
Rural Local Broadcast Signal Act (House)

INTERNATIONAL
Chinese Army Plans Mobile Phone Venture (WSJ)
Web Surfers Find Cracks In Wall Of Official China (USA)

MERGERS

REPORTERS TRY ON MANY HATS IN CHICAGO NEWS EXPERIMENT
Issue: Journalism/Merger
The Tribune Company is experimenting with turning newspaper reporters into
"multimedia journalists" and merging vast media properties into one large
newsgathering source. Reporters may write for the Chicago Tribune, be heard
on WGN radio, and appear on WGN-TV or the 24-hour cable news channel, CLTV.
No, its not because they have to hold down a number of low-paying jobs;
reporters are referred to as "content providers" for the parent company of
all these outlets. The experiment has been going on in Chicago for many
years and could come to a city near you with Monday's announcement of the
proposed Tribune/Times Mirror merger. The company is breaking down the walls
between television, newspapers, radio and the Internet, trying to teach
reporters how to contribute to the various on outlets while also promoting
other Tribune properties. "They're the ones leading the pack in multimedia
journalism," said Tom Goldstein, dean of the Columbia Graduate School of
Journalism. "Journalists of the future are going to have to know a lot of
things, and I think the Tribune Company is ahead in that way."
[SOURCE: New York Times (A1), AUTHOR: David Barboza]
(http://www.nytimes.com/library/financial/031500tribune-chicago.html)
See Also:
THE SELLING OF THE LOS ANGELES TIMES
[SOURCE: New York Times (A28), AUTHOR: NYTimes Editorial Staff]
(http://www.nytimes.com/yr/mo/day/editorial/15wed2.html)
A GENERAL WHOSE TIME RAN OUT
[SOURCE: New York Times (C1), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/financial/031500time-willes.html)

TELECOMMUNICATIONS MERGER ACT OF 2000
Issue: Mergers
Link to statements and testimony at yesterday's House Subcommittee on
Telecommunications Trade & Consumer Protection hearing. Members of Congress
and some FCC commissioners blasted the Commission for its review of
telecommunications and media mergers. FCC Chairman Kennard took exception to
the bill being discussed, noting that the Telecom Act of 1996 "charged the
FCC with opening telecommunication markets that have historically been
closed." The proposed bill, as drafted, "would deny the FCC sufficient
flexibility to do what Congress told us to do -- to promote competition."
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/7b6f272f9144161f852568a10068faac?OpenDocument)

EDTECH

PROGRAM TRAINS TEACHERS IN CROSS-BORDER SHARING OF KNOWLEDGE
Issue: EdTech
"We are tapping the resources of universities around the world to produce
the best content possible," said Elizabeth Lowe, director of the Partnership
in Global Learning, which is financed by a $1.5 million grant from the
Lucent Technologies Foundation, the charitable arm of the telecommunications
company. The company is also donating about $1.5 million in equipment to the
project. The project will use the Internet and other communications
technology to offer high school and college-level course materials for
classrooms around the globe. One purpose of the project is to increase the
amount of high-quality educational content online. Even in English, the
language that dominates the Internet, there is a dearth of such material
now. And experts in educational technology in developing countries say the
problem is particularly acute for non-English speaking nations.
[SOURCE: CyberTimes, AUTHOR: Pamela Mendels (mendels( at )nytimes.com)]
(http://www.nytimes.com/library/tech/00/03/cyber/education/15education.html)

ONLINE EDUCATION TO BE FREE
Issue: Philanthropy
Michael Saylor, who has made billions of dollars in the information
business, with his company, MicroStrategies, will announce tomorrow that he
has donated $100 million to create an online university that will offer "Ivy
League-quality" education at no cost. Saylor's plan will include lectures by
"geniuses and leaders," who will be videotaped beginning in the next months.
Saylor does not plan to pay those who will make up this "genius knowledge
bank." "People line up and fight to get on the Charlie Rose show," Saylor
said. "I think they'll fight to get into the studio. It gives a great
calculus
teacher the chance to teach 100 million people." Saylor's goal is to provide
for posterity. "If [Andrew] Carnegie were alive today, this would be his
library," Saylor said. "People will want to be part of it." If it turns out
he's wrong, he said, he'll figure out another approach -- "maybe royalties,"
he said. Saylor plans to make his announcement at the Greater Washington
Business Philanthropy Summit in Washington, an organization that seeks to
encourage philanthropy in the region.
[SOURCE: The Washington Post (A1), AUTHOR: Cindy Loose]
(http://www.washingtonpost.com/wp-dyn/articles/A9402-2000Mar14.html)

PRIVACY

EUROPE AND U.S. REACH DATA PRIVACY PACT
Issue: Privacy
"We reached an important stage today," said John Mogg, the European Union's
negotiator, after completed the wording yesterday on a privacy agreement
with the U.S. "I feel ready to recommend to authorities that the safe harbor
meets our criteria." American companies that gather personal information
from Europeans will now have to join so-called "safe harbor" programs, under
which they would agree not to gather or use personal information about
European consumers without the consumers' express consent. "This agreement
does not try to solve the issue of jurisdiction," a Clinton administration
official said. "What the safe harbor idea does is advises our industry as to
what to do to conduct business with Europe and not run afoul of their laws.
This advise applies equally to Web sites," who he said would have an
"enormous advantage" in Europe by following the rules. The agreement is
expected to take effect this summer.
[SOURCE: CyberTimes, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/15privacy.html)
See Also:
U.S., EU NEGOTIATORS REACH AGREEMENT ON ELECTRONIC-COMMERCE PRIVACY RULES
[SOURCE: Wall Street Journal (B4), AUTHOR: Glenn Simpson]
(http://interactive.wsj.com/articles/SB953077395972255889.htm)

WITH SO MUCH SUBSCRIBER DATA, AOL WALKS A CAUTIOUS LINE ON PRIVACY
Issue: Privacy
With so much attention focused on Doubleclick, privacy advocates may be
unaware of one of the biggest information gatherers around. While AOL admits
to keeping records such as names, address and credit card numbers on its 21
million subscribers, it doesn't track users' travels on the Web. Well,
maybe not on the Web, but AOL's system does automatically track users'
movements within AOL's proprietary service - including chat rooms, e-mail,
news services and other content - where users' spend about 85% of their
time. "AOL is probably sitting on a bigger wealth of information about
consumers than any other entity," said Jeffrey Minsky, director of media
convergence at WPP Group. AOL says it has never sold data about its members'
movements within its system. "The notion of having someone track where
individual users go online took us in a direction we felt was
inappropriate," says Kathy Bushkin, and AOL senior vice president. AOL has
focused thus far on attracting and keeping paid subscribers and, if it were
to
begin selling detailed information, it could face a backlash by subscribers
and a regulatory review.
[SOURCE: Wall Street Journal (B1), AUTHOR: Nick Wingfield and Glenn Simpson]
(http://interactive.wsj.com/articles/SB953070781153369510.htm)

INTERNET

'HORSE RACE' ON FIBER OPTICS SPEEDS UP
Issue: Infrastructure
Nortel Networks has plans to acquire Xros Inc., a company with technology
that directs voice and Internet traffic over fiber optic networks, for $3.25
billion. The purchase is the latest move in an increasingly expensive
battle between Nortel and other companies trying to dominate the expanding
market for fiber optic network equipment. To relieve the increasing
bottleneck of traffic over traditional copper wires, companies are turning
to fiber optics, which transmit information using beams of light at much
greater speeds and do not need to be replaced as network traffic increases.
But even with optical equipment, there are several parts of
telecommunications networks that remain wedded to electronic equipment,
including switches. Lucent's and Xros' optical switches, however, use a
tightly packed array of tiny mirrors to direct optical traffic, which
eliminates the need to convert data into electronic form, increasing traffic
speed and reducing costs. Analysts predict that other equipment makers, such
as Cisco, Sycamore Networks and Ciena Corp., will need to develop or acquire
optical switching technology in order to remain competitive in the optical
networking market.
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.mercurycenter.com/svtech/news/indepth/docs/xros031500.htm)

GILMORE SIGNS BILL ON SOFTWARE
Issue: Internet
Gov. James S. Gilmore III of Virginia signed a bill making the state
the first to regulate the software licensing agreements that take effect
when a consumer opens a software package or hits the "I Accept" button on a
downloaded program. While consumer groups have criticized the legislation,
Virginia's technology companies consider the signing of the bill a major
part of their push to make Virginia the most Internet-friendly state. Gov
Gilmore called the legislation "vital for continued growth of online
commerce." But
advocacy groups are concerned that consumers don't always know the terms of
licensing agreements before making their software purchase. "The whole idea
of informed shopping is based on disclosure before purchase," said Jean Ann
Fox, of the Virginia Citizens Consumer Council, which lobbied against the
bill.
[SOURCE: The Washington Post (B1), AUTHOR: Craig Timberg]
(http://www.washingtonpost.com/wp-dyn/articles/A9445-2000Mar14.html)

TELEVISION

RURAL LOCAL BROADCAST SIGNAL ACT
Issue: Television
Thursday, March 16, 2000 10:00 a.m. in 2123 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection
legislative hearing on H.R. 3615, the Rural Local Broadcast Signal Act.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

INTERNATIONAL

CHINESE ARMY PLANS MOBILE PHONE VENTURE
Issue: International
In an attempt to maintain control of its mobile-phone networks, the Chinese
Liberation Army is joining with several of China's biggest high-tech
companies to try to form the country's third mobile-phone operator. China's
political leaders had ordered the army to sell off its networks by 1998, but
the Army has decided to build new mobile operations in three more provinces.
Roughly 45 million Chinese currently use mobile phones and the number is
expected to double this year. It is unsure if the military plans to own
equity in the new company, called Century Mobile Communications. "Other
companies will invest in the network, and we will build it," said an
official from Shenzhou Great Wall Communications Development Center, the
commercial wing of the army responsible for military communications.
[SOURCE: Wall Street Journal (A20), AUTHOR: Matt Forney and Jason Dean]
http://interactive.wsj.com/articles/SB95306145891976369.htm

WEB SURFERS FIND CRACKS IN WALL OF OFFICIAL CHINA
Issue: Internet/Political Discourse/International
As the Internet explosion in China threatens to overwhelm the
government's ability to control it, the government is hustling to monitor
Net content with the same fervor as it does print and broadcast media.
China's online population more than quadrupled last year to almost 9
million, and within five years it is expected to have more Internet users
than any other country. While the government realizes that China must be
wired to the Net if it is going to thrive in the 21st century economy, it
also wants to keep tight controls on information. Visitors exchanging
information and opinions in chat rooms often say things online that would
have been unthinkable a few years ago. The government even has created a
forum for political discourse: the People's Daily chat room, called
"Strengthen the Country." "In the information age, if you don't offer people
such a service, they will go somewhere else," said Wang Xiaodong, a Beijing
researcher who has written a book about the Net. The People's Daily chat
room
is "relatively controllable, and (the government) can learn about public
opinion."
[SOURCE: USAToday (1B), AUTHOR: Julie Schmit and Paul Wiseman]
(http://www.usatoday.com/usatonline/20000315/2031918s.htm)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Online (www.openstudio.org/)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/14/2000

MERGERS
Tribune Co. Deal Puts Cross-Ownership Rule in the Cross Hairs (WSJ)

INTERNET
Poor Aren't Profiting, Non-Profit Group Says (USA)
A Close Look at a New Medium (WP)
Teen Girls Feel The Net Effect Sites Let Them 'Feel Like Somebody's
Listening,' But Is Privacy The Price? (USA)

SPECTRUM
FCC Explores Ways to Let Firms Trade Licenses to Ease Congestion of
Airwaves (WSJ)

WIRELESS
Delivering Fiber Speeds Without Needing The Wires (SJM)
UPC Wins Broadband Wireless Licenses (WSJ)
Text Messages, Though Short, Catch On With Cell Users (CyberTimes)

DIGITAL CONTRACTS
Virginia Is First With Controversial Software Law (CyberTimes)

ANTITRUST
Antitrust Suit Against Intel is Dismissed (WSJ)

CONGRESSS
Bliley's Out, Who's In? (B&C)

MERGERS

TRIBUNE CO. DEAL PUTS CROSS-OWNERSHIP RULE IN THE CROSS HAIRS
Issue: Mergers
Chicago-based Tribune Co. said Monday that it would acquire Times Mirror Co.
of Los Angeles in a $5.9 billion deal that would create a multimedia giant
with 22 television stations, 11 daily newspapers, four radio stations, a
strong Internet presence and the Chicago Cubs baseball team. The deal could
also sound the death knell of a 25 year-old rule against owning daily
newspapers and television stations in the same city. Under the rule, Tribune
Co. would have to obtain a waiver from the FCC in order to operate stations
and newspapers in Los Angeles, New York and Hartford, Conn., or wait until
2006 when the rule comes up for review. However, the rule could be changed
before then, and Tribune Co., along with newspaper and broadcast-industry
lobbyists, are working to do just that. Tribune Co. says it will fight the
rule in court if it has to, but it might not come to that. The rule is also
under fire in Congress. U.S. Senate Commerce Committee Chairman John McCain
wants it repealed. He called the FCC rule "as out-of-date as Alice Kramden's
icebox."
[SOURCE: Wall Street Journal (A1), AUTHOR: John Wilke]
(http://interactive.wsj.com/articles/SB952997759824251650.htm)
SEE ALSO: HOW TRIBUNE GRABBED A MEDIA PRIZE
[SOURCE: Wall Street Journal (B1), AUTHOR: James Miller]
(http://interactive.wsj.com/articles/SB952988992915432361.htm)
TRIBUNE TO BUY TIMES MIRROR CO.
[SOURCE: The Washington Post (A1), AUTHOR: Howard Kurtz]
(http://www.washingtonpost.com/wp-dyn/articles/A2435-2000Mar13.html)

INTERNET

POOR AREN'T PROFITING, NON-PROFIT GROUP SAYS
Issue: Digital Divide
A report to be released on Wednesday by the non-profit Children's
Partnership says that the digital divide is not only about who gets onto the
Internet -- it's also about what they find when they get there. The report
shows that there is a real lack of content for low-income Americans. "The
bottom line is that there is a severe shortage of exactly the kind of
information needed by low-income and other underserved Americans," says
Wendy Lazarus, co-founder of the organization and co-author of the study.
Lazarus also says that the problems aren't difficult to remedy.
Profit-driven Web sites can make money by serving people of limited means.
The year-long research included interviews with low-income Americans and a
survey of 1,000 Web sites.
[SOURCE: USAToday, PG 3D, AUTHOR: Janet Kornblum]
(http://www.usatoday.com/usatonline/20000314/2026880s.htm)

A CLOSE LOOK AT A NEW MEDIUM
Issue: Internet
George Mason University in Fairfax, Va. saw a gathering of some of the
Internet's biggest and brightest at the first day of their 2000 Global
Internet Summit. Industry leaders gushed over the burgeoning size of the
Internet, which is now said to have 275 million users worldwide, and the
billions of dollars they hope to earn by selling a host of products and
services over the World Wide Web. But corporate and government leaders also
expressed concern about a host of issues, including potential government
regulation, Internet security and the cost of keeping the giant network's
infrastructure up to date. Michael S. Dell, chairman and chief executive of
Dell Computer Corp., said that only about 5 percent of the network servers
now in use will be advanced enough to still be usable in a few years,
necessitating $370 billion in new Internet infrastructure spending in 2003
alone. The conference also addressed the ongoing debate over whether
Internet commerce ought to be taxed and to what degree it ought to be
regulated. Virginia Gov. James S. Gilmore III (R), one of the summit's
organizers, reiterated his opposition to new Internet taxes in his keynote
address. Alluding to his role as chairman of the Congressional Advisory
Commission on Electronic Commerce, the governor said "I hope the members of
the commission will exercise wisdom and vision in their deliberations."
[SOURCE: The Washington Post (E2), AUTHOR: Kenneth Bredemeier]
(http://washingtonpost.com/wp-dyn/articles/A2613-2000Mar13.html)

TEEN GIRLS FEEL THE NET EFFECT - SITES LET THEM 'FEEL LIKE SOMEBODY'S
LISTENING', BUT IS PRIVACY THE PRICE?
Issue: Internet
Teenage girls, especially 12 to 15, are one of the fastest-growing groups on
the Internet, according to Teenage Research Unlimited. In 1996, 54% were
online; by 1999, it's 87%. What teen girls like best about the Internet is
the ability to chitchat, use bulletin boards, supervised chat rooms, e-mail
and especially instant messaging. They also like participating in surveys,
giving their opinion on almost anything, including issues like, "Is your dad
a dork?" But what the teens might not realize is that the opinions and
feelings that they so freely share are sold to market researchers. "It's
unbelievable the things they are willing to and want to share," said Karen
Ready, director of research at SmartGirl. This selling of teen information
is troubling to Internet watchdogs. "That's what they [teen sites] are
really about, picking the brains of teens. They often pose as your
friend...when in fact what they want to do is find out how to market to
kids," said Kathryn Montgomery of the Center for Media Education (CME). CME
was part of the coalition that fought for the Children's Online Privacy
Protection Act, taking effect April 21, which will force sites that target
visitors under 13 to have to obtain parental permission before collecting
personal information.
[SOURCE: USAToday (3D), AUTHOR: Dru Sefton]
http://www.usatoday.com/usatonline/20000314/2026877s.htm

SPECTRUM

FCC EXPLORES WAYS TO LET FIRMS TRADE LICENSES TO EASE CONGESTION OF AIRWAVES
Issue: Spectrum
Aimed at easing the growing congestion on the airwaves, the Federal
Communications Commission is planning on holding a forum this Spring to
discuss regulations that would allow a company to temporarily sell or lease
its underutilized spectrum to another company or use the spectrum for
purposes other than that originally designated under its license. This would
be a departure from the FCC's traditional approach of licensing users and
dictating how spectrum should be allocated and for what purpose. "We want to
look at how to move spectrum management much, much closer to a market
approach," said a FCC official. The FCC is also expected to consider a new
technology called 'software-defined radio' which allows cellular phones and
other radio equipment to utilize spectrum at different frequencies.
[SOURCE: Wall Street Journal (A6), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB952990554201419409.htm

WIRELESS

DELIVERING FIBER SPEEDS WITHOUT NEEDING THE WIRES
Issue: Broadband
Striving to fill the growing demand for fiber-optic data connection speeds,
companies have been laying vast amounts of fiber to carry so-called Internet
backbone traffic. But the cost of laying all that fiber is immense. A
Seattle company says it has found a way to bring fiber speeds without the
wires, and without the high price. TeraBeam is developing what it calls its
"fiberless optical" networks in metropolitan areas, with transceivers on
customers' premises exchanging data with devices installed around the city.
The revolutionary part is that TeraBeam would use light waves, not radio
waves, to carry the data. If the technology works as promised, it could
deliver several gigabits per second, more than 20 times as fast as a typical
home modem connection. The TeraBeam service is aimed squarely at businesses,
universities and other large enterprises that want to get big data bandwidth
at what could be a very low relative cost.
[SOURCE: San Jose Mercury News, AUTHOR: Dan Gillmor]
(http://www.mercurycenter.com/svtech/columns/gillmor/docs/dg031400.htm)

UPC WINS BROADBAND WIRELESS LICENSES
Issue: Broadband
Dutch cable company United Pan-Europe Communications won wireless licenses
in Spain and Switzerland, leading to an increased concern that it controls
too large a piece of the European cable and television market. UPC won the
Spanish license in the first ever public auction of wireless licenses
conducted on the Internet. The awarding of the licenses comes days after UPC
announced it was acquiring SBS Broadcasting, one of Europe's fastest-growing
broadcasters, for $2.8 billion. A majority in the Dutch parliament warned
last week that it would propose legislation to counter UPC's increasing
market position if the government fails to do so. UPC has snatched up 10% of
the European cable market in 12 countries and, with its acquisition of SBS,
gets control of television stations across Europe, including two in the
Netherlands.
[SOURCE: Wall Street Journal (A27), AUTHOR: James Dorsey]
(http://interactive.wsj.com/articles/SB95298425856470273.htm)

TEXT MESSAGES, THOUGH SHORT, CATCH ON WITH CELL USERS
Issue: Wireless
Little known in the U.S., Short Messaging Service (SMS), is a text-messaging
feature of European cell phones. Despite its limited capabilities, like the
short message length (160 characters, about the size of this sentence so
far), small screens and the clumsiness of typing text using the cell phone's
keyboard, the service is becoming increasingly popular. In some Nordic
countries it already accounts for nearly one-fifth of mobile revenues. "It's
the less intrusive way to keep up with the outside world while in a
meeting," commented Heikki Huomo, a vice-president at Nokia, the Finnish
mobile phone manufacturer. SMS is a feature of GSM digital cellular phones
which make up 89 percent of the European mobile phone market, but only
account for around 4 percent of U.S. cell phones.
[SOURCE: Cyber Times, AUTHOR: Bruno Giussani]
(http://www.nytimes.com/library/tech/00/03/cyber/eurobytes/14eurobytes.html)

Digital Contracts

VIRGINIA IS FIRST WITH CONTROVERSIAL SOFTWARE LAW
Issue: Digital Contracts
Gov. James Gilmore of Virginia will use the Global Internet Summit he is
sponsoring in Virginia, Tuesday, to sign the nation's first state law
governing licenses for the use of computer software. The legislation, known
as the Uniform Computer Information Transaction Act (UCITA), is aimed at
reinforcing the legal status of digital contracts. Home software users often
encounter these contracts when using some e-commerce Web sites and when
installing software. Software makers are advocating similar laws in
legislatures around the country, saying it is needed to protect their
licenses and copyrights in the digital age. Because the licenses are agreed
to after the removal of the plastic shrink-wrap protection on software, and
do not become available for consumers' perusal until the point of
installation, opponents of the legislation fear the "click-wrap" agreements
will override traditional consumer protection and fair-use laws, giving
software makers more control than ever over how their products are used. A
coalition including two dozen state attorneys general, the American Library
Association, the FTC and some software developers are fighting the
legislation, which was developed by the commission that writes uniform state
laws. Delaware, Hawaii, Illinois, Maryland and Oklahoma are expected to make
decisions this year.
[SOURCE: Cyber Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/capital/14capital.html)

ANTITRUST

ANTITRUST SUIT AGAINST INTEL IS DISMISSED
Issue:
A federal judge dismissed the antitrust suit against Intel, claiming that
Intergraph's antitrust claim was "not viable" after the decision by an
appellate court last November that ruled that Intel hasn't abused its
dominance of the personal-computer microprocessor market. Intel and
Intergraph have been locked in legal combat since 1997, when Intergraph
first charged that Intel had bullied it into giving up valuable
computer-related patent rights. It alleged that Intel abused its market
power by withholding microprocessors and important chip-related data that
Intergraph needed to design its computers. Judge Nelson originally sided
with Intergraph's monopoly claims, but the appellate court overturned that
decision in November, noting that antitrust principles didn't apply since
Intergraph and Intel weren't competitors. The Federal Trade Commission
continues to maintain a broader antitrust probe of Intel.
[SOURCE: Wall Street Journal (B8), AUTHOR: David Hamilton]
(http://interactive.wsj.com/articles/SB952990025856542515.htm)

CONGRESS

BLILEY'S OUT, WHO'S IN?
Issue: Congress
Since Commerce Committee Chairman Tom Bliley (R-VA) announced last week that
he would be leaving Congress at the end of this session, Rep. Billy Tauzin
(R-La.), chairman of the House Telecommunications Subcommittee, and Rep.
Mike Oxley (R-Ohio), chairman of the House Finance and Hazardous Materials
Subcommittee, have begun vying for the opportunity to take his place.
Rep.Tauzin is a flamboyant former Democrat from Louisiana, who changed
parties after then-Speaker Newt Gingrich (R-Ga.) led the 1994 Republican
revolution. According to insiders, Rep.Bliley has appeared to favor
Rep.Oxley -- a loyal Republican for his 20 years in Congress. Both Bliley
and Oxley say that should they become chairman, they would have whoever does
not become chairman lead a reunited telecommunications and finance
subcommittee.
[SOURCE: Broadcasting&Cable (p.8), AUTHOR: Paige Albiniak]
(http://www.broadcastingcable.com/top/top_article.asp?articleID=692243048)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis
(nancy( at )benton.org), and Harry Chauss (harry( at )benton.org) -- we welcome your
comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/13/2000

MERGERS
Media Giants Set $8 Billion Merger (WP)
Qwest US West Merger Cleared by FCC if They Meet Conditions (WSJ)
Radio One to Add 21 Stations (WP)
Telecommunications Merger Act of 2000 (House)
Deutsche Telekom is Still Hungry for a Big Deal (WSJ)
Push for New Magazine May Test AOL-Time Warner Synergy (NYT)

OWNERSHIP
F.C.C. to Promote a Trading System to Sell Airwaves (NYT)
Revitalized UPN Is at Center of a Struggle for Ownership (NYT)

ED TECH
The Soul of a New University (NYT)

INTERNET
Digital Commerce: Case Illustrates Entertainment Industry's
Copyright Power (NYT)
China Reverses Harsh Internet Rules, Easing Threat to Trade (WSJ)
What's in a Name? Arcane Internal Bickering, Internet Agency Learns
(NYT)
Senior Surfers Rushing Online (USA)
Internet Instills Family Values -- Really (USA)

TELEVISION/CABLE
ABC Backs Off Threat to Pull Programs Off Houston Time Warner Cable
Systems (WSJ)
The Rural Local Broadcast Signal Act (House)

TELEPHONY
MCI May Pay $100M To Settle Lawsuit Focuses On High 'Casual Calling'
Rate (USA)
You've Got...A Phone Call? AOL Quietly Builds a Telecom Empire (WSJ)

COPYRIGHT
Case Illustrates Entertainment Industry's Copyright Power (NYT)

MERGERS

MEDIA GIANTS SET $8 BILLION MERGER
Issue: Merger
Tribune, the Chicago-based media conglomerate best known for its flagship
newspaper, the country's third-largest metropolitan daily, will merge with
Times Mirror Co., the Los Angeles-based publisher of the Los Angeles Times,
the Baltimore Sun and Newsday, the Tribune said early this morning.
Tribune's acquisition of the Los Angeles Times alone would represent the
largest newspaper purchase since the New York Times spent more than $1
billion to acquire the Boston Globe in 1993. The Tribune said that under the
terms of the stock and cash deal, which was valued at $8 billion, Tribune
would control the operations of the combined companies, which would be
headquartered in Chicago and headed by John Madigan, chairman of Tribune.
The combined company would be a newspaper, magazine and television
powerhouse.
[SOURCE: Washington Post (A1), AUTHOR: Howard Kurtz]
(http://washingtonpost.com/wp-dyn/business/A63929-2000Mar13.html)
See Also:
TRIBUNE COMPANY IS SEEN IN TALKS ON UNION WITH TIMES MIRROR
[SOURCE: The New York Times (Online), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/yr/mo/day/news/financial/tribune-mirror.html)

QWEST US WEST MERGER CLEARED BY FCC IF THEY MEET CONDITIONS
Issue: Merger
The Federal Communications Commission granted conditional approval of the
Qwest/US West merger this past Friday. The deal can't close until the two
carriers submit details on how Qwest will diverse itself of all of its
long-distance business in US West territory, about 6% of Qwest's customers
in that market. Over the last week, the relationship between Qwest and US
West became shaky after Qwest held acquisition discussions with Deutsche
Telekom without US West's knowledge. US West executives felt that the
discussions constituted a violation of the merger agreement but are still
pushing for the merger to happen. The pending merger is valued at $50
billion.
[SOURCE: Wall Street Journal (B12), AUTHOR: Stephanie Mehta and Kathy Chen]
(http://interactive.wsj.com/articles/SB952896649643140148.htm)
See Also:
FCC APPROVES QWEST/US WEST MERGER
Issue: Merger
The Federal Communications Commission (FCC) approved applications to
transfer control of licenses and lines from US WEST (US WEST) to Qwest
Communications International (Qwest). This approval is subject to the
Commission's determination that Qwest's divestiture of its long distance
customers in US WEST's region complies with its legal requirements to cease
providing interLATA, or long distance, services in US WEST's territory.
Additionally, Qwest's divestiture and the Commission's approval must be
completed prior to closing the merger.
Action by the Commission March 8, 2000 by Memorandum Opinion and Order (FCC
00-91). Chairman Kennard, Commissioners Ness, Powell and Tristani, with
Commissioner Furchtgott-Roth concurring in part, dissenting in part and
issuing a separate statement.CC Docket No.: 99-272 Common Carrier Bureau
contact: Henry Thaggert at 202-418-7941
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/News_Releases/2000/nrcc0017.html)

RADIO ONE TO ADD 21 STATIONS
Issue: Radio/Mergers
Radio One will announce today that it will purchase 21 radio stations for
more than $1.36 billion, in a series of deals that will more than double the
revenue of the onetime D.C. community radio outfit, making it the largest
African American media company in the country. Radio One's acquisition
spree, which will result in a bolstered presence in the Midwest and
Southeast, will give the company a 48-station national reach and is
outpacing even that of the consolidation crazed radio industry. "Within
three to five years, there will be full consolidation," meaning that the
bulk of the 4,000 revenue-producing stations around the country will be
owned by six or so major radio companies, including Radio One, predicts Tim
Wallace, an analyst with Radio One underwriter Banc of America Securities
LLC.
[SOURCE: Washington Post (A5), AUTHOR: Yuki Noguchi]
(http://washingtonpost.com/wp-dyn/business/A62179-2000Mar12.html)

TELECOMMUNICATIONS MERGER ACT OF 2000
Issue: Mergers
Tuesday, March 14, 2000 10:00 a.m. in 2322 Rayburn House Office Building
Subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on the Telecommunications Merger Act of 2000.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

DEUTSCHE TELEKOM IS STILL HUNGRY FOR A BIG DEAL
Issue: Internetaional
Unable to come to an agreement with Qwest due to their pending merger with
US West, Deutsche Telekom is looking through its little black book for other
possible acquisition targets. At the top of the list are Equant, a Dutch
company with headquarters in Atlanta, Global Crossing, and Cable & Wireless,
based in the UK. Two years ago, Deutsche Telekom considered bidding for
Cable & Wireless but was scared off by the high price tag and complications
with C&W's holdings in Hong Kong Telecom. C&W just recently spun off its
Hong Kong Telecom holdings. Deutsche Telekom is also eyeing Telefonica SA of
Spain and France Telecom. It had lost a bid to acquire Telecom Italia last
year.
[SOURCE: Wall Street Journal (A21), AUTHOR: William Boston]
(http://interactive.wsj.com/articles/SB952888998155339007.htm)

PUSH FOR NEW MAGAZINE MAY TEST AOL-TIME WARNER SYNERGY
Issue: Mergers
Susan Wyland, managing editor of Real Simple, a new magazine from Time,
showed off proof pages of the first issue. She pointed to an artful,
stylishly minimalist photograph illustrating the article "The Fastest,
Easiest Way to Clean Your Bathroom." Do photographs of toilet bowls make a
magazine? The editors of Time Inc. think so, and so does theirprospective
partner, America Online, which has been working with theReal Simple staff to

plan promotion for the magazine. Whether the affiliation with AOL helps the
introduction of Real Simple will be closely watched at Time Inc. It is, in
its relatively small way, a test run of the larger possibilities for synergy

between America Online and Time Warner. In the first month of Real Simple's
arrival,
the AOL welcome page will contain a link to a Real Simple Web site. The
site will feature AOL message boards and chat rooms concerned with Real
Simple issues. It will also have a special subscription offer for AOL
subscribers that is now planned to last at least a year. "AOL and Real
Simple have the same mission: to simplify the consumer's life," Ann S.
Moore, president of the People division of Time, which is publishing the
magazine, said.
"We can leverage the Time assets to promote the
magazine, and when you crank up AOL on top of that and use the power of
their 21 million subscribers -- well, put it this way, I have not broken out
in a sweat."
[SOURCE: The New York Times (C15), AUTHOR: Alex Kuczynski]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13real.html)

OWNERSHIP

F.C.C. TO PROMOTE A TRADING SYSTEM TO SELL AIRWAVES
Issue: Spectrum/Ownership
Offiials at the Federal Communications Communications Commission is
preparing new rules that would create a trading system for spectrum
frequencies. Telecommunications companies of all kinds, from old-fashioned
radio stations and telephone companies to purveyors of wireless Internet
services, could bid for underused slivers of the spectrum that are already
under the control of other companies. Labton writes: It would be a radical
overhaul of the rules governing one of the most valuable, if intangible,
forms of property in the new economy: the rights to transmit electronic
signals at specific radio frequencies that constitute the spectrum. It would
also have profound implications, not only for the telecommunications
industries, but for consumers as well. Currently, the FCC grants licenses to
users for particular frequencies and signal power. Although original
licenses were given for free, they are often sold for large sums. Demand is
higher than supply causing what FCC officials term "spectrum drought."
[SOURCE: New York Times (A1), AUTHOR: Stephen Labton]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13spec.html)

REVITALIZED UPN IS AT CENTER OF A STRUGGLE FOR OWNERSHIP
Issue: Ownership
UPN, a 50-50 partnership between Viacom and Cris-Craft, is the sixth biggest
broadcast television network. But the network is also the fastest growing
now with the addition of World Wrestling Federation programming this past
year. The WWF has helped the network build a large audience of the
highly-sought teenage male demographic. Viacom, of course, has another
little ownership deal going on: buying CBS. Viacom and CBS want UPN all to
themselves and they have given Cris-Craft an ultimatium: sell your share to
Viacom or buy out Viacom. Cris-Craft would prefer to keep the partnership to
help absorb financial loses that continue despite its recent success; it has
gone to court to stop the merger because it believes that if Viacom acquires
CBS, UPN would no longer receive proper attention. The legal point it is
making is this: Viacom is violating a clause in the partnership agreement
that Chris-Craft says forbids Viacom from making a deal with any competing
network. Viacom's position is that the merger is only proposed at this
point, not put into effect, and therefore it never violated its noncompete
deal.
[SOURCE: New York Times (C1), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/upn-future.html)
See Also:
CHRIS-CRAFT, FACING A DEADLINE, QUERIES MEDIA FIRMS ON HELPING RUN UPN
[SOURCE: Wall Street Journal (B16), AUTHOR: Martin Peers and Joe Flint]
(http://interactive.wsj.com/articles/SB952912356930694110.htm)

ED TECH

THE SOUL OF A NEW UNIVERSITY
Issue: EdTech
[Op-Ed] Information economies require higher levels of education and more
frequent education. Students are asking their relationship with their
college to be more like that with a utility company, supermarket or bank --
an emphasis on convenience, service, quality and affordability. Students are
likely to gravitate toward online instruction delivered to the home or
workplace. Textbooks are dying as learning materials are customized for each
class; distance learing allows remote professors and students to connect.
One corporate entrepreneur recently told Levin: "You know, you're in an
industry which is worth hundreds of billions of dollars, and you have a
reputation for low productivity, high cost, bad management and no use of
technology. You're going to be the next health care: a poorly managed
nonprofit industry which was overtaken by the profit-making sector." Levin
concludes: Those of us in higher education have a small amount of time to
stop and think. What is the purpose of higher education? How shall we
continue to accomplish it? Not to answer these questions is to make a
profound decision, by default, about our own prospects for the future.
[SOURCE: New York Times (A25), AUTHOR: Arthur Levin, Teachers College,
Columbia University]
(http://www.nytimes.com/yr/mo/day/oped/13levi.html)

INTERNET

CASE ILLUSTRATES ENTERTAINMENT INDUSTRY'S COPYRIGHT POWER
Issue: Internet/Copyright
Last month, after only two months of operation, the Canadian Internet
company iCraveTV.com was shut down by a lawsuit filed by the Motion
Picture Association of America(MPAA). The suit cites iCraveTV's core
business, to redistribute live broadcast television over its Web site.
It is illegal to redistribute television without first obtaining the
permission of the program's owner in the U.S.. Apparently, it is not
illegal to do so in Canada, but the MPAA argued that iCraveTV's methods
for keeping U.S. Internet users from accessing the site, such as asking
for an area code, were too easily circumvented. The company shut down
operations to avoid being liable for millions of dollars in damages, while
the company's president and co-founder, William Craig invented technology
that would make it possible to pinpoint the geographic location of any user
attempting to access the site. This new technology, many argue, would
devolve the Internet into a model very
much like the restricted, centralized control of cable television. "In
every context that it can, the entertainment industry is trying to force the
Internet into its own business model -- the perfect control of content,"
wrote the constitutional scholar Lawrence Lessig, whose column about the
iCraveTV case recently appeared in The Industry Standard. Throughout
history, innovation has been linked conclusively with the free exchange of
information and ideas -- by means of the public library system, in the
previous millennium, and certainly via the Internet today. If everyone
hermetically seals their content with technology, Peter Jaszi, a law
professor at American University in Washington says, "we could well end up
with a world where we have very strong protection for a rather limited range
of ultimately not very interesting content."
[SOURCE: The New York Times (C4), AUTHOR: Denise Caruso]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/13digi.html)

CHINA REVERSES HARSH INTERNET RULES, EASING THREAT TO TRADE
Issue: International/Internet
China passed a new regulation which reverses a previous order that banned
products containing foreign-designed encryption software. The ban had
threatened to escalate into a trade dispute between US and China. What the
new regulation doesn't address is the requirement of foreign companies to
register the type of encryption software they use, list what employees use
it, and provide the employee's location and phone number. While all foreign
companies were supposed to complete the first round of registration by Jan.
31, few did. The Chinese commission responsible for the new regulation also
confirmed it will not introduce a "key escrow" system in which encryption
passwords must be provided to a third party, which in turn could provide the
passwords to the Chinese government. The commission acknowledged that
foreign pressure, along with China's efforts to gain admission to the World
Trade Organization, led to the changes.
[SOURCE: Wall Street Journal (A21), AUTHOR: Matt Forney]
(http://interactive.wsj.com/articles/SB95288825566411888.htm)

SENIOR SURFERS RUSHING ONLINE
Issue: Internet
Contrary to popular stereotypes, older adults are already the
fastest-growing segment of the Web market and spend more time--and
money--online individually than those in other age groups, studies show.
They are flocking to the Web in droves, as a way to make friends, find
bargains and stay connected with their tech-savvy grandchildren. "There's
fickleness to youth, but there's loyalty in older people," said Stephen
Yafa, of www.Seniors.com, a three-year-old
Web site. "They are the last frontier." But for many seniors, cost remains a
barrier. Even with prices plummeting, a $500 entry-level personal computer
is a big investment for someone on a fixed income. Additionally, arthritis
and failing eyesight can make computer and Internet use difficult for older
adults. But more companies are offering software programs that allow voice
commands, and products like ZoomText allow users to enlarge words on the
screen for easier reading. "At my age now, everybody wants to use it," said
Bohie Herzer, 69, of Alexandria, VA. "It's getting to the point where,
without a computer, you can't live."
[SOURCE: Washington Post (A1), AUTHOR: Dan Eggen]
(http://washingtonpost.com/wp-dyn/articles/A61895-2000Mar12.html)

INTERNET INSTILLS FAMILY VALUES -- REALLY
Issue: Internet
[OP-ED] When the study came out last month claiming that some people are
spending too much time on the Internet and not enough time living real life,
Alcestis "Cooky" Oberg laughed. In the right hands, she writes, that
computer mouse can actually take you over the rougher bumps on real life's
road. Take adolescence. When kids hit that uncommunicative, "I don't know
those people who call themselves my parents" stage, you can reach your kids
by e-mail. For instance, even though they lived under the same roof, she
found she could get a good, long, sometimes funny e-mail response from her
teenager during "the surly years." "I never would have gotten beyond
monosyllables and guttural utterances in face-to-face real life, " she says.
She also adds that Internet has turned out to be a new, fairly wholesome
vehicle for socializing teens -- safer than fast cars and seedy hangouts.
One shy boy she knows set up a virtual drama club on the Net, with 150 kids
across the nation. Then there's Virtual Granny. When her husband's mom
visited , he introduced her to the joys of e-mail, file-attach photos, eBay,
Amazon and the virtual portfolio. She took to it all like a born nerd. She
found old pals, communicated with nieces and grandchildren, bought stuff to
be delivered to her doorstep at the click of a mouse. Anyone who accuses the
Internet of taking too much time away from "real life" must first consider
what that real life is. The elderly, for instance, are often shut in and
isolated by their health. Sometimes, they are "retired" to a different city,
uprooted from their old hometowns where they spent most of their lives and
raised their families.
[SOURCE: USAToday (15A), AUTHOR: Alcestis ''Cooky'' Oberg]
(http://www.usatoday.com/usatonline/20000313/2023485s.htm)

WHAT

Communications-related Headlines for 3/10/2000

INTERNET
Internet Panel Has No Funds (SJM)
ICANN Continues to Ponder Addition of New Domain Names (WSJ)
Go Won't Offer Free Internet Access, Portal's Chief Questions
Value Of Non-Paying Users (USA)

TELEPHONY
Bell Atlantic To Pay $13 Million In Fines (WP)

PRIVACY
Report Says Privacy Challenges Are Significant (NYT)

MERGERS
Radio One to Buy Divested Stations (WP)
Bids for Qwest, US West are Withdrawn (WSJ)
United Pan-Europe Agrees to Acquire SBS Broadcasting in $2.8
Billion Deal (WSJ)

INTELLECTUAL PROPERTY
Amazon.com Chief Executive Urges Shorter Duration for Internet
Patents (WSJ)

WIRELESS
Motorola Warns Iridium Phone Service May End Soon, Unless It Gets
a Buyer (WSJ)
British Telecom Forms Ventures For Global Mobile Internet Service
(WSJ)

INTERNET

INTERNET PANEL HAS NO FUNDS
Issue: Internet
At its first and only meeting so far, a new government panel established
under the Child Online Protection Act to help devise ways to keep Internet
smut away from children found itself homeless and penniless. The 16-member
Internet Decency Commission quickly realized it has no funding and no
federal agency to serve as its host, while similar panels in Washington
enjoy budgets in excess of $1 million. The failure of Congress to provide
the commission with any money or resources has raised fundamental doubts
about Washington's commitment to this issue. In a survey conducted last
spring by the University of Pennsylvania's Annenberg Public Policy Center,
more than 75 percent of parents nationwide said they were concerned their
children might view sexually explicit images on the Internet. The
commission's inaugural meeting was dominated by the questions of "how it was
that we could do what we were charged to do since we were not provided with
any funding to do it," said C. James Schmidt, a panel member and chief
information officer at San Jose State University. "It's a knotty problem."
The group believes accepting contributions, from outsiders or its own
members, "would make whatever product came out suspect," Schmidt added.
[SOURCE: San Jose Mercury News, AUTHOR: Ted Bridis (Associated Press)]
(http://www.mercurycenter.com/svtech/news/breaking/ap/docs/302125l.htm)

ICANN CONTINUES TO PONDER ADDITION OF NEW DOMAIN NAMES
Issue: Internet
With the remaining possibilities for Internet domain names ending in
".com" running short, the organization responsible for Internet names,
Internet Corporation for Assigned Names and Numbers (ICANN), is
considering adding several new top-level generic domain name endings.
"There should be new generic top-level domain names," said Jonathan
Weinberg, who heads one of two naming committees set up last year by
ICANN. If ICANN decides to go ahead and add new suffixes, users could
see endings such as ".info" or ".shop" appear. "Expanding the names will
diminish the artificial scarcity of names, create opportunities for entities
that have been shut out under the current name structure and promote
electronic commerce," Mr. Weinberg told the ICANN board of
directors and some 300 participants who gathered for the organization's
two-day board meeting in Egypt. Ending that artificial scarcity has caused
names to be sold for millions of dollars. But then again, new domain
suffixes could also add to the problems of trademark infringement and
"cybersquatting." Companies "are concerned that there will be a whole new
round of cybersquatting, that big trademark owners then have to go out and
fight court battles around the world," another ICANN director, Jonathan
Cohen, said earlier this week.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB952636938916250998.htm)

GO WON'T OFFER FREE INTERNET ACCESS, PORTAL'S CHIEF QUESTIONS VALUE OF
NON-PAYING USERS
Issue: Internet
While many of the nation's major Internet portals are rushing to offer free
Internet access, one is holding out. Walt Disney's Go Network hasn't and
doesn't plan to offer a free access service, saying that free services do
not attract higher-income users who regularly use the Net to shop or surf.
"I wonder about the value of the users. Are they really the people you're
going to create a deep affinity and relationship with?" says Go President
Steve Wadsworth. "If they want the access for free, is that the kind of
person you want to target your ads to?" According to a recent report by
Jupiter Communications analyst Joe Laszlo, free access users are slightly
younger and less affluent than traditional users. The study also found they
use the Net less: 15 to 20 hours a month vs. 28 to 30 for those who pay a
fee. The other portals say offering free access also has attracted users to
their subscription products. And not offering it is a competitive risk.
Yahoo began offering free access in December through BlueLight.com. Drew
Lanham, Yahoo senior director of business development, says it has generated
higher traffic for its sites and its partners. "We really like the idea. The
more users on the Internet, the more users will be able to benefit from our
services.''
[SOURCE: USAToday (2B), AUTHOR: Keith L. Alexander]
(http://www.usatoday.com/usatonline/20000310/2017104s.htm)

TELEPHONY

BELL ATLANTIC TO PAY $13 MILLION IN FINES
Issue: Competition/Telephony
The Federal Communications Commission and New York state regulators have
fined Bell Atlantic $13 million today after concluding that its widespread
systems problems have hindered many of its customers from switching to
competitors. Last year, Bell Atlantic became the first regional phone
company to win the right to expand into long-distance service. While the
Baby Bell promised to open its local market to competition, the company ran
into problems when the software it uses to update competitors on the status
of their orders crashed amid the onslaught of customer requests to switch
service. "The local phone market in New York will remain open," FCC Chairman
William E. Kennard said. "Our action today will ensure that Bell Atlantic
performs or bears the consequences." Bell Atlantic's competitors, however,
felt that the FCC's actions didn't got far enough. "For them to be allowed
in without having to give us what we need is a big problem," said Randy
Lowe, chief legal officer for Prism Communication Services Inc., a New
York-based local telephone company. He added that the fines were mere "lunch
money to Bell Atlantic." Commissioner Gloria Tristani, who dissented in the
FCC decision, seemed to agree that the Commission should have taken stronger
actions. Bell Atlantic's problems "have the potential to impede
significantly the development of competition in New York," she said. "The
more appropriate response would have been to direct Bell Atlantic to show
cause why the commission should not suspend its authorization to provide
long distance."
[SOURCE: Washington Post (B3), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-dyn/business/A44504-2000Mar9.html)

PRIVACY

REPORT SAYS PRIVACY CHALLENGES ARE SIGNIFICANT
Issue: Privacy
The Clinton administration issued a report yesterday noting that law
enforcement groups face significant challenges in keeping up with online
criminals. However, even as the report was released, one of the its authors,
Attorney General Janet Reno, said she believes that existing laws would be
adequate for addressing the problems for the most part. And where new laws
are needed, she added, the government would consult with industry
representatives before deciding how to proceed. "Let us discuss those"
issues, Ms. Reno said. "Let us understand what the balances are. Let us sit
down with industry." The report has already been criticized by civil
liberties groups for stating that balancing online anonymity with law
enforcement officials' ability to track criminals is a "thorny issue." In a
press release issued even before the report was made public, the American
Civil Liberties Union complained that "the report treats the anonymity of
Internet users as a 'thorny issue,' rather than a constitutional right. An
end to Internet anonymity would chill free expression in cyberspace and
strip away one of the key structural privacy protections enjoyed by Internet
users."
[SOURCE: The New York Times (A17), AUTHOR: Joel Brinkley]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/10privacy.html)

MERGERS

RADIO ONE TO BUY DIVESTED STATIONS
Issue: Broadcasting/Mergers
Washington, DC area broadcaster Radio One will buy some of the stations
being divested by Clear Channel Communications for around $1 billion,
analysts say. In an unrelated announcement, Clear Channel said yesterday
that it would divest itself of 16 more stations to meet federal ownership
restrictions as it looks to complete its $23.5 billion acquisition of AMFM
Radio Networks. Radio One, which since its beginnings in 1980 with flagship
AM station WOR in Washington, DC and has grown to own 27 stations in urban
markets around the country, had no comment on the deal for now. Analysts
expect the company to make an announcement on Monday.
[SOURCE: The Washington Post (E1), AUTHOR: Yuki Noguchi]
(http://washingtonpost.com/wp-srv/business/feed/a47734-2000mar10.htm)

BIDS FOR QWEST, US WEST ARE WITHDRAWN
Issue: Mergers
Deutsche Telekom withdrew yesterday's offers to acquire Qwest and US West,
after US West said it wouldn't consider any offer that might delay its
pending $50 billion merger with Qwest. In making this decision, US West was
clear in its decision not pursue any additional deals until its merger with
Qwest is over. Qwest was disappointed by the news saying, "We regret that US
West apparently wouldn't even consider an alternative transaction involving
a major telecommunications company and Qwest," per Joseph Naccio, chief
executive officer of Qwest. Even though the merger between Qwest and US West
is still on track, the relationship is badly strained. If regulatory
approval isn't completed by the end of the year, Qwest could attempt to walk
away from the merger. Qwest executives spent much of last week trying to
see if they could extract the company from the merger agreement and pursue a
deal with Deutsche Telekom. It abandoned that effort and has agreed to honor
its pact with US West.
[SOURCE: Wall Street Journal (A3), AUTHOR: Stephanie Mehta]
(http://interactive.wsj.com/articles/SB952641083276910303.htm)

UNITED PAN-EUROPE AGREES TO ACQUIRE SBS BROADCASTING IN $2.8 BILLION DEAL
Issue: Mergers
Cable television operator United Pan-Europe Communications of Amsterdam
agreed to acquire SBS Broadcasting of Luxembourg in a $2.8 billion stock and
cash deal. The deal brings together UPC's 6.8 million cable subscribers,
227,000 residential telephony lines and 134,000 Internet subscribers in 13
countries with SBS's 10 television and 17 radio stations across Europe. UPC,
which already had a 23% stake in SBS, said the acquisition would boost its
interactive-TV programming plans and high-speed Internet Service. UPC is 70%
owned by UnitedGlobalCom of Denver. The new company will be named UPC Media.
[SOURCE: Wall Street Journal (A13), AUTHOR: News Roundup]
(http://interactive.wsj.com/articles/SB952636542486487324.htm)

INTELLECTUAL PROPERTY

AMAZON.COM CHIEF EXECUTIVE URGES SHORTER DURATION FOR INTERNET PATENTS
Issue: Intellectual Property
Amazon chief executive Jeff Bezos agreed with critics of the current patent
laws by saying that, "I now believe it's possible that the current rules
governing business method and software patents could end up harming all of
us." In an open letter posted on the Amazon Web site, Mr. Bezos suggested
that patents should last 3 to 5 years instead of the current 17, that
outsiders should be allowed to comment on proposed software patents before
they are issued, and he offered to fund a software repository to help patent
examiners determine if an idea is truly novel. Amazon has come under fire
recently for its patenting of business processes that use the Internet.
Critics have complained that many of these patents reward trivial
innovations and that patent examiners do not do a good job of looking for
similar existing software. Mr. Bezos said he contacted several members of
Congress regarding his recommendations. In response, a spokeswoman for the
U.S. Patent and Trademark Office suggested it wouldn't support Mr. Bezos's
recommendations saying, "The system works for this technology in the same
way it works for all technology."
[SOURCE: Wall Street Journal (B3), AUTHOR: Scott Thurm]
(http://interactive.wsj.com/articles/SB952650678789578387.htm)

WIRELESS

MOTOROLA WARNS IRIDIUM PHONE SERVICE MAY END SOON, UNLESS IT GETS A BUYER
Issue: Satellite
Motorola Inc. has sent customers of the Iridium satellite-phone service
letters warning that their service may not continue past March 17 unless a
qualified buyer for the satellite-phone venture is found. Wireless
entrepreneur Craig McCaw recently said he wouldn't rescue Iridium LLC,
leaving the future of the $5 billion Iridium project in doubt. The letters
sent by Motorola warned customers that, unless a qualified buyer comes
forward by Wednesday, "don't expect service to be available after 11:59 p.m.
on March 17."
[SOURCE: Wall Street Journal Interactive, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB95264074170949469.htm)

BRITISH TELECOM FORMS VENTURES FOR GLOBAL MOBILE INTERNET SERVICE
Issue: Wireless
British Telecommunications PLC has formed joint ventures with leading
high-tech companies to develop a global network of mobile phones with
Internet applications. British Telecom plans to invest $253 million in the
projects and launch global mobile Internet services in the summer. Microsoft
will supply the mobile Internet applications, Phone.com Inc. will provide
the portal software, and Motorola Corp. will build the handsets with
Internet compatibility, as will Sweden's Telefon AB L.M. Ericsson AB,
Siemens AG of Germany and NEC CORP. of Japan. British Telecom said that it
aims to enable customers to use mobile handsets to receive news and
information and to pay credit card bills, trade shares, listen to music or
buy airline tickets. The number of mobile subscribers around the world is
expected to increase by 200% in the next five years to more than a billion.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Associated Press]
(http://interactive.wsj.com/articles/SB952616474566550762.htm)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis
(nancy( at )benton.org), and Harry Chauss (harry( at )benton.org) -- we welcome your
comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/9/2000

INTERNET GOVERNANCE
Government Officials Join Voices Urging Caution on Internet
Oversight
Vote (NYT)
Controversy Swirls Around Cyberspace Report (USA)
Estee Lauder Gains Victory in Suit Over Web Use of Its Trademark
(WSJ)

WOMEN AND TECHNOLOGY
For Museum, Online Way Is Only Way, for Now (NYT)
The Dot-Com World Opens New Opportunities for Women to Lead (NYT)

CIVIC ENGAGEMENT
2000 Census (Shhh!) on the Net (NYT)
Thousands Vote Online in Arizona (NYT)

BROADBAND
High-speed Access Prices Tumbling (SJM)

TELEPHONY
In Never-Bell Land, Phone Service Is Way Above Average, and
Competitive
(NYT)
Truth in Telephone Billing Act of 1999 Hearing (House)

DTV
FCC Commences Periodic Review of Digital Television Conversion
(FCC)

INTERNATIONAL
German Giant Seeks Qwest and U.S. West (WSJ)
U.S. Deputy Commerce Secretary Robert L. Mallett To Lead U.S.
Delegation
To Fifth Annual Latin American Telecommunications Summit
(NTIA)

INTERNET GOVERNANCE

GOVERNMENT OFFICIALS JOIN VOICES URGING CAUTION ON INTERNET OVERSIGHT
VOTE
Issue: Internet
As members of the Internet Corporation for Assigned Names and Numbers
(ICANN) met in Cairo, officials from more than 20 countries were
calling for the group to be more cautious about the elections the group
has planned for September. This came just after public interest groups
issued a report last week saying that ICANN would have to make
significant changes before a fair vote, free from the influence of
special interests, would be possible. As the first experiment in
Internet democracy, the vote will be the first step in electing a new
board for ICANN, replacing the interim board that was appointed in 1998
after the Clinton administration selected ICANN to take over the
administrative functions of the Internet's addressing, or domain name,
system. And those interim board members are eager to hand over the
reigns. However, ICANN's president, Mike Roberts, said the board would
keep an open mind until it makes a final decision on the election
process on Friday. "A lot of the proposals want a delay just so we can
look at it some more," he said. "We've been looking at it for a year
and a half."
[SOURCE: Cyber Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/09domain.html
)

ESTEE LAUDER GAINS VICTORY IN SUIT OVER WEB USE OF ITS TRADEMARK
Issue: Intellectual Property
Estee Lauder announced a victory in Germany's District Court of Hamburg
over Internet companies Excite and iBeauty, forcing both to stop using
certain Estee Lauder trademarks as keywords to trigger banner ads on
Web sites. Keywords are terms entered into Internet search engines to
find information online. Such words have been sold to advertisers, who
want their banner ads to pop up when the words are entered. This case
has major implications for sites across the Web since keyword-based ads
currently generate hundreds of millions of dollars in revenue. Drew
Ianni, an analyst for Jupiter Communications, said that the German
decision, "is at least the first precedent out there in cyberspace
related to this type of conflict." Estee Lauder has filed similar suits
against iBeauty and Excite, in France and federal court in New York.
[SOURCE: Wall Street Journal (B14), AUTHOR: Karen Jones]
(http://interactive.wsj.com/articles/SB952566850153204842.htm)

CONTROVERSY SWIRLS AROUND CYBERSPACE REPORT
Issue: Privacy/Security
Attorney General Janet Reno will release a report today that seeks to
expand the powers of law enforcement to conduct investigations in
cyberspace. The report is the product of a presidential working group
that was appointed last summer. It recommends a loosening of
restrictions on several technical and legal procedures that would make it
easier to identify and track individual Internet users. "They make the
assertion that there is all this illegal conduct on the Internet that
they must investigate, but nowhere in the report do they show any
numbers or proof," says Emily Whitfield of the American Civil Liberties
Union, which asked Reno in a letter to reject the report's conclusions.
"The report treats anonymity of Internet users as a 'thorny issue,'
rather than a constitutional right," says the ACLU letter.
[SOURCE: USAToday (4A), AUTHOR: M.J. Zuckerman and Kevin Johnson]
(http://www.usatoday.com/usatonline/20000309/2012177s.htm)

WOMEN AND TECHNOLOGY

THE DOT-COM WORLD OPENS NEW OPPORTUNITIES FOR WOMEN TO LEAD
Issue: Gender/Employment
Women are using Internet companies to find opportunities that are equal
or better to those found in more traditional "brick an mortar"
companies. As reported by the research firm VentureOne, women were
chief executives in about 6% of venture capital backed Internet firms
and held top management positions in 45% of such start-ups in 1999. In
1998, women held the chief executive position 4% of the time and
accounted for 21% of senior management positions. These numbers are
much different than those in the "brick and mortar" world. There, as
found in a 1998 census conducted by the women's research firm Catalyst,
women occupied fewer than 1% of the chief executive positions and only
3.8% of the highest ranking corporate officer positions. Internet
companies are, "definitely causing a leveling of the playing field"
said Denise Brosseau, the president of the Forum for Women
Entrepreneurs. The main reason Internet opportunities are in such
abundance for women is that there is an unquenchable need for talent.
But, Gayle Crowell of epiphany.net argues that the Internet is a whole
new playing field, "it's about brand building and knowing the consumer,
and women are great at that."
[SOURCE: The New York Times (C1), AUTHOR: Leslie Kaufman]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/09net.html)

FOR MUSEUM, ONLINE WAY IS ONLY WAY, FOR NOW
Issue: Media & Society
After nearly a decade of planning, the Women of the West Museum has
finally opened. At least virtually. When the museum's backers couldn't
raise enough money for a building, they decided to open a location on
the Web. The museum's first exhibition, the LoDo Mural Project,
combines a public mural project in downtown Denver with corresponding
online images and text. "Originally the museum was going to be a
bricks-and-mortar stand-alone facility," said Marsha Semmel, president
and chief executive of the Women of the West Museum, based in Boulder,
Colo. "What we are doing is what many businesses are doing -- adapting
to the changing ways people spend their time and get their information.
As if to underscore the breadth of the museum's reach, Semmel adds:
"When our site was named a Yahoo pick-of-the-week, we heard about it
from a male engineering student in Shanghai who e-mailed us." Visitors
to the site can learn about pioneer and contemporary women who helped
shape the West, like Molly Brown (the unsinkable Titanic passenger) and
Teresita Sandoval, one of the 1800's founders of Pueblo, Colorado.
[SOURCE: The New York Times (G11), AUTHOR: Mindy Sink]
(http://www.nytimes.com/library/tech/00/03/circuits/articles/09west.htm
l)

CIVIC ENGAGEMENT

2000 CENSUS (SHHH!) ON THE NET
Issue: Internet
The Census Bureau has a secret: people in many parts of the country
will be able to fill out their census forms online. Even as the Bureau
has embarked upon a massive advertising campaign to get people to
participate in the census, it has not said much at all about the online
version. Edison Gore, assistant division chief for field programs at
the Census Bureau, said census officials prefer that people stick to
the "tried and proven" method of pen and paper. "We know what's going
on there, and it's very controlled. The Internet is something new."
This time out, only households that receive the shorter of the two
census forms (about five out of every six households nationwide) may
submit their information electronically, others must stick to the paper
form. And even those who wish to submit the information electronically will
still need the paper form, each of which contains a bar code with a 22-
digit number that must be entered to call up the on-screen version. The
site, which is off of the main census site, (www.census.gov), provides
guidance for completing the form. And if people run into trouble, the
site suggests they give up and revert to the paper form. It is unclear
whether the Internet will help the census in its primary goal of
increasing the response rate. Census officials say that Internet
collection is unlikely to encourage responses among the poor and other
groups that traditionally do not answer the census.
[SOURCE: The New York Times (G11), AUTHOR: Joyce Cohen]
(http://www.nytimes.com/library/tech/00/03/circuits/articles/09cens.htm
l)

THOUSANDS VOTE ONLINE IN ARIZONA
Issue: Internet
More than 17,000 Democrats in Arizona have cast ballots via the Internet in
the first two days of voting during a primary billed as the first
binding online election. Despite technical glitches and a federal
lawsuit that sought to block the Internet voting, more than 13,000 votes
had been cast online by the end of Tuesday. "This election was about
expanding opportunities to participate," said Mark Fleisher, chairman
of the state party. A United States District Court judge rejected a
request for a temporary injunction against the Internet vote last week.
The Voting Integrity Project, a nonprofit voting rights group based in
Virginia, challenged the Internet election on the ground that
minorities and the poor would not have equal access to voting. Deborah
Phillips, president of the Voting Integrity Project, said the group
hopes to challenge the Arizona election in court after the vote is
final.
[SOURCE: Cyber Times, AUTHOR: Rebecca Fairley Raney]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/09vote.html)

BROADBAND

HIGH-SPEED ACCESS PRICES TUMBLING
Issue: Internet
High speed Internet access prices are falling, as competition between
providers has already helped cut $300 off of the price of the first
year of service. Traditional Internet service providers are scrambling
to enter the high-speed access market, and a favorable federal
regulatory ruling could help them push prices down even further this
year. New regulations -- which take effect later this summer -- slash
the fee competitors must pay to the local phone company to gain access
to a customer's home by 75 percent. This has observers predicting the
monthly cost of DSL could go as low as $29.95 by the end of the year.
That may be low enough to convince a typical consumer who is paying
$21.95 each month to an ISP. "Everybody is running to grab customers,"
said Liz Fetter, CEO of NorthPoint Communications, which offers high-
speed Internet services. Together, high-speed cable and DSL connections
account for about 5 percent of homes with Internet access in the United
States and Canada today, said Kinetic Strategies president Michael
Harris. "In the long run, pricing of DSL won't be important," said
Kevin Mitchell, an analyst for Infonetics Research. "Companies will be
giving it away."
[SOURCE: San Jose Mercury News, AUTHOR: Chris O'Brien]
(http://www.mercurycenter.com/svtech/news/indepth/docs/dsl030900.htm)

TELEPHONY

IN NEVER-BELL LAND, PHONE SERVICE IS WAY ABOVE AVERAGE, AND COMPETITIVE
Issue: Telephony
Somewhat lost among the giant telecommunications firms are the more
than 1,000 small independent phone companies providing services in
mostly rural areas of the US. As phone service becomes an increasingly
important economic factor, little phone companies that serve out-of-
the-way communities find themselves in demand by new business. Set up
to serve the more costly low-population areas, they are finding that
they can branch out into neighboring towns without much added expense.
This is a result of the Telecommunications Act of 1996, which allowed
federal regulators to push down the cost of leasing phone lines to
jump-start competition. But independents that do not grow seem to be
heading for consolidation. In the past, former Bell companies weren't
interested in consolidating independents because arcane regulations
made the acquisitions too costly. Now, companies that specialize in
acquiring rural telecommunications businesses are snapping up local
access lines at $2,400 to $5,000 each. Those independents that are not
selling are upgrading, installing fiber optic lines and offering
Internet access with high-speed connections.
[SOURCE: The New York Times (C1), AUTHOR: Julie Flaherty]
(http://www.nytimes.com/yr/mo/day/news/financial/richmond-phones.html)

TRUTH IN TELEPHONE BILLING ACT OF 1999 HEARING
Issue: Telephony
Legislative Hearing H.R. 3011, the Truth in Telephone Billing Act of
1999 and H.R. 3022, the Rest of the Truth in Telephone Billing Act of
1999 Subcommittee on Telecommunications Trade & Consumer Protection
March 9, 2000 10:00 AM 2322 Rayburn House Office Building Live Audio
Broadcast
[SOURCE: House of Representatives]
(http://com-notes.house.gov/cchear/hearings106.nsf/12b6a0781fa86e88852567e50
07558f4/ba047f137cab5f9e8525689c0070d8fb?OpenDocument)

DTV

FCC COMMENCES PERIODIC REVIEW OF DIGITAL TELEVISION CONVERSION
Issue:
The FCC today began its first periodic review of the progress of
conversion of the U.S. television system from analog technology to
digital television (DTV). The Commission noted that broadcast stations
are facing relatively few technical problems in building digital
facilities, and that problems encountered by some stations with tower
availability and/or local zoning issues do not seem to be widespread.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Mass_Media/News_Releases/2000/nrmm0005.html
)

INTERNATI0NAL

GERMAN GIANT SEEKS QWEST AND U.S. WEST
Issue: Mergers
Deutsche Telekom made separate offers to acquire Qwest and US West,
deals that could total more than $100 billion. Qwest and U.S. West had
agreed to merge last summer but it was only recently that U.S. West
became aware of Qwest's conversations with a major telecommunications
firm, thought to be Deutsche Telekom. Many of the regulators in the 14
states in which US West has a presence had already agreed to the Qwest-
US West merger. If Deutsche Telekom were to secure a deal with Qwest,
the entire process would have to be restarted. Deutsche Telekom's
intent in offering two separate deals is to give Qwest the bulk of the
premium it is willing to pay for both companies, but show respect for
Qwest's deal with US West.
[SOURCE: Wall Street Journal(A3), AUTHOR: Rebecca Blumenstein]
(http://interactive.wsj.com/articles/SB952556369441537877.htm)

U.S. DEPUTY COMMERCE SECRETARY ROBERT L. MALLETT TO LEAD U.S.
DELEGATION TO FIFTH ANNUAL LATIN AMERICAN TELECOMMUNICATIONS SUMMIT
Issue: International
U.S. Deputy Secretary of Commerce Robert L. Mallett and Peru's Minister
of Transportation, Communications and Construction, Alberto Pandolfi
will co-host the fifth Latin American Telecommunications Summit in
Lima, Peru March 13-16, 2000. The Ministerial-level conference provides
an opportunity for senior U.S. and Latin American government officials
and telecommunications industry leaders to discuss major policy issues
affecting the region.
[SOURCE: NTIA]
(http://204.193.246.62/public.nsf/docs/8C90FBD7182638498525689B007608D0
)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis
(nancy( at )benton.org), and Harry Chauss (harry( at )benton.org) -- we welcome your
comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/8/2000

DIGITAL DIVIDE
Federal-State Joint Conference on Advanced Services Initial Field
Hearing (FCC)
With a Little Bit of Luck (SJM)

BROADCASTING
Broadcasters Create Iblast to Distribute Content to Pcs Via Wireless
Technology (WSJ)
NBC Quits NAB Over the Issue of Ownership Caps (WSJ)

PRIVACY
2 Hired to Calm Fears for Web Privacy (NYT)

INTERNET
Plan for Free Access in Britain (NYT)
Simon & Schuster to Release Story by Stephen King on the Web Only
(WSJ)

TELEPHONY
Bell Atlantic Blocking AT&T, Armstrong Says (WP)

ANTITRUST
Microsoft, U.S. Still No Closer To Accord (WP)

DIGITAL DIVIDE

FEDERAL-STATE JOINT CONFERENCE ON ADVANCED SERVICES INITIAL FIELD HEARING
Issue: Broadband/Digital Divide
The Federal-State Joint Conference on Advanced Telecommunications Services
(Joint Conference) will hold its initial meeting and field hearing on March
8, 2000, from 10:30 am to 1:00 pm at the Renaissance Hotel, 999 9th Street,
NW, Washington, D.C.
Joint Conference's mission is to gather information on the deployment of
advanced telecommunications services. At this initial meeting, the Joint
Conference will focus on deployment of broadband in inner cities, including
examining successful and creative means to bring high speed services to
previously underserved communities. Transcripts of this meeting, as well as
updates on future field hearings, will be posted on the Joint Conference's
web site: www.fcc.gov/jointconference.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/2000/da000515.html
)

WITH A LITTLE BIT OF LUCK
Issue: Digital Divide
Thirteen-year-old Myra Jodie clicked onto a Web site while surfing the Net
at school and entered herself into a drawing for a new Internet-ready iMac.
This sort of thing happens every day. However, Myra Jodie actually won the
computer. Yet there's a slight problem: Myra Jodie lives on the Navajo
Reservation and her family doesn't even have running water--let alone
telephone service. So, for now, Myra's new internet-ready iMac will remain
nothing more than internet-ready. Myra's story echoes the unfortunate
statistic that, at best, only one in four households on the Navajo
reservation have telephone service. And for Myra, the nearest point of
connectivity for her new iMac is the telephone line wired to a public phone
booth at the Steamboat Food Store and Laundry, 8 miles away.
[Source: Silicon Valley.com, Author: Moria Gunn]
(http://www.mercurycenter.com/svtech/columns/gunn/docs/mg03072000.htm)

BROADCASTING

BROADCASTERS CREATE IBLAST TO DISTRIBUTE CONTENT TO PCS VIA WIRELESS
TECHNOLOGY
Issue: Broadcasting/Internet/Wireless
Entering into the wireless fray, a dozen major television companies are
forming a wireless distribution network to deliver video, music and other
content to consumers through their personal computers. The company, iBlast,
has agreements with 143 local television stations in 102 cities and will
reach more than 80% of the nation with its network. Broadcasters will allow
iBlast to distribute content by using part of the digital spectrum the
government has allocated to the broadcasting industry for new technologies.
"While high-definition television will remain one of the primary uses for
our digital spectrum, iBlast represents an entirely new use of this
important asset-the transmission of the full range of digital content
delivered free to consumers," said Andrew Fisher an executive at Cox
Broadcasting. Investors in the venture include the Tribune Company, Gannett,
Cox Broadcasting, Washington Post Company, New York Times, and Meredith
Corp.
[SOURCE: Wall Street Journal (B8), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB952469030975695757.htm)
See Also:
MAJOR BROADCASTERS FORM ALLIANCE TO PROVIDE WIRELESS WEB CONTENT
[SOURCE: New York Times (Online), AUTHOR: Associated Press]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/08web-broadcast.
html)

NBC QUITS NAB OVER THE ISSUE OF OWNERSHIP CAPS
Issue: Broadcasting
NBC pulled out of the National Association of Broadcasters (NAB), claiming
that the NAB hasn't done enough to push lawmakers to relax rules limiting
the number of television stations one company can own. Last year, Fox
network pulled out of the NAB over the same issue. The Federal
Communications Commission allows national broadcasters to own local TV
stations that reach up to 35% of the country. NBC, and other large
broadcasters, would like that cap increased to 50%. On the other hand, local
broadcasters fear that an increase in the cap will cause the networks to
grow too powerful and local programming to vanish. A NAB spokesman confirmed
that while the NAB generally supports deregulation, "our board has spoken on
the 35% cap and we support retaining it." NBC paid $400,000 annually for its
NAB membership. NBC's departure, assured a NAB spokesman, "will not in
anyway imperil the association's fiscal health." Walt Disney, ABC's parent
company, and CBS have said that neither plans to exit from NAB in the near
future.
[SOURCE: Wall Street Journal (B8), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB952472492136098156.htm)

PRIVACY

2 HIRED TO CALM FEARS FOR WEB PRIVACY
Issue: Privacy
One week after DoubleClick, the Internet's largest advertisement placement
company, announced that it would delay a plan to merge a vast database of
off-line consumers with information it gathers about Internet users, it has
hired two of New York's most prominent consumer advocates. Robert Abrams,
former state attorney general, has been named chairman of the company's new
privacy advisory board. Jules Polonetsky, the city's commissioner of
consumer affairs and a former state legislator, has been appointed
DoubleClick's chief privacy officer. The appointments of Mr. Abrams and Mr.
Polonetsky is seen as part of an effort to reassure the public, investors
and federal and state regulators that the company will respect computer
users' privacy rights. Deirdre K. Mulligan, staff counsel at the
Washington-based Center for Democracy and Technology, said she was pleased
that DoubleClick was appointing executives to address consumers' privacy
concerns, but she added that it remained to be seen how serious the
company's commitment is. "If this is only window dressing, it is not
adequate," she said, noting that her organization believed that it was
likely that federal legislation would still be needed to govern how such
vast loads of consumer data can be used.
[SOURCE: New York Times (Online), AUTHOR: Eric Lipton]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/08click.html)

INTERNET

PLAN FOR FREE ACCESS IN BRITAIN
Issue: Internet
American telecommunications group NTL announced that it will provide free
and unlimited Internet access in Britain beginning April 17. The plan, which
was praised by Prime Minister Tony Blair "as a significant new offer," comes
on the heels of a similar offer by AltaVista. NTL's announcement caused the
stock of Britain's leading Internet service provider, Freeserve, to fall
sharply. One reason that British ISPs are concerned by the NTL offer is that
current "free" services are not free. Freeserve offers free accounts, but
charges users for telephone time. At costs of up to 10 cents a minute at
peak times, "free" Internet access in Britain can cost as much as twice what
it costs for an American consumer. NTL will charge nothing for telephone
access, but will require users outside of the reach of its cable networks to
sign up for its voice telephone service to qualify for its Internet service.
"We are three-quarters of the way through the battle for unmetered Internet
access," said Erol Ziya, spokesman for the nonprofit group Campaign for
Unmetered Access.
[SOURCE: Cyber Times, AUTHOR: Jane Black]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/08britain.html)
SEE ALSO:
U.S. MODEL FOR WEB ACCESS PRICING ADVANCES IN EUROPE
[SOURCE: Wall Street Journal Interactive, AUTHOR: Kevin Delaney and
Stephanie Gruner]
(http://interactive.wsj.com/articles/SB952468661493528001.htm)

SIMON & SCHUSTER TO RELEASE STORY BY STEPHEN KING ON THE WEB ONLY
Issue: Internet
Publishing house Simon & Schuster plans to release a 66-page ghost story by
Stephen King, titled "Riding the Bullet", in digital format only. Consumers
will be able to buy the book for $2.50 through web sites run by e-book
manufacturers as well as online booksellers. "This has the potential to
redefine the mass market for us," said Jack Romanos, president and COO of
Simon & Schuster, "We are rooting for the format to work." But few name
authors have published their work online. While King is expected to produce
another electronic-only book, his agent doesn't expect the author to start
publishing all of his books exclusively electronically. Simon & Schuster
has teamed up with e-book manufacturers Glassbook, NuvoMedia and Softbook
Press.
[SOURCE: Wall Street Journal (B8), AUTHOR: Matthew Rose]
(http://interactive.wsj.com/articles/SB952468808197966990.htm)

TELEPHONY

BELL ATLANTIC BLOCKING AT&T, ARMSTRONG SAYS
Issue: Telephony
Saying that Bell Atlantic is too slow to fill customers' requests to change
local phone companies, AT&T chairman C. Michael Armstrong threatened to file
a complaint with the FCC seeking to remove Bell Atlantic's right to provide
long distance services in New York state. Last year Bell Atlantic became the
first of the regional "Baby Bells" to meet the conditions set by the FCC to
provide long distance services, by opening up its local service markets to
rivals. Since that time, there has been a backlog of orders that Bell
Atlantic has yet to fill. "Our brand is damaged each and every time they
fail to provide our customers with services," Armstrong charged. Last month
a New York commission ordered Bell Atlantic to clear its backlog by February
18. While the results of Bell Atlantic's efforts to do so are unverified, if
it has failed, it is liable for up to $100,000 a day in fines for disobeying
the order.
[SOURCE: Washington Post (E3), AUTHOR: Peter S. Goodman]
(http://washingtonpost.com/wp-srv/business/feed/a31779-2000mar8.htm)

ANTITRUST

MICROSOFT, U.S. STILL NO CLOSER TO ACCORD
Issue: Antitrust
A Microsoft executive who claimed to a Goldman Sachs analyst that there was,
"a flurry of activity" to settle the case appears to have been wrong.
Microsoft shares jumped 7% when analyst Rick Sherlund of Goldman Sachs said,
"it appears to us that things may be heating up as we near the end." But
according to people close to the settlement talks, Microsoft is just as far
from resolving the case as they were two weeks ago. One thing Mr. Sherlund
was right about though is that the end is nearing, since talks aren't
expected to continue after Judge Jackson issues his final judgement in the
next several weeks. While government attorneys have called for far-reaching
sanctions, including a possible breakup of the company, they also haven't
ruled out imposing stiff limits on Microsoft's business practices. Whatever
Microsoft has proposed in response, it doesn't seem to have left antitrust
prosecutors optimistic about settlement.
[SOURCE: Washington Post (E3), AUTHOR: James V. Grimaldi]
(http://washingtonpost.com/wp-srv/business/feed/a31773-2000mar8.htm)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis
(nancy( at )benton.org), and Harry Chauss (harry( at )benton.org) -- we welcome your
comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/7/2000

POLITICAL DISCOURSE
Networks Plan Sweeping Coverage of Primaries (NYT)

INTERNET
ICANN Says U.S. Will Let It Prosecute Cybersquatters, Domain
Profiteers (WSJ)
Online Mental-Health Therapy In Its Formative Years (USA)
Free-Speech Fight Over Webmaster (SJM)

PRIVACY
Commission Will Work to Protect Children after Legislation Fails
(CyberTimes)

INTELLECTUAL PROPERTY
Outrage Pending Over Net Patents Grants Seen As Helping Businesses
While Harming Free Exchange Of Ideas (USA)

MERGERS
Verisign to Buy Network Solutions in Stock Swap Valued at $21
Billion (WSJ)
Radio Giant Clear Channel Agrees to Sell 72 Stations (WP)
Qwest Deal With US West Casts Shadow over Merger (WP)

WIRELESS
Race for Wireless Takes Off in Europe (WSJ)

POLITICAL DISCOURSE

NETWORKS PLAN SWEEPING COVERAGE OF PRIMARIES
Issue: Television/Political Discourse
The three major broadcast networks and their cable counterparts will provide
coverage of today's presidential primaries that will almost resemble
coverage of a general election. ABC, CBS and NBC will be updating their
evening news broadcasts and breaking into regular programming with the
latest news as polls close in 16 states across four time zones. The cable
news channels, including CNN, Fox News and MSNBC, will offer nonstop
election news beginning early in the evening. The broadcast networks are
hoping that they will share in some of the audience growth that the cable
networks have experienced during recent primary coverage. Both cable and
broadcast networks are concerned, however, that early results of the exit
polls will be posted on the Internet. Slate, the online magazine, posted the
overall results of a news service poll as the votes were still being cast in
New Hampshire and South Carolina.
[SOURCE: New York Times (A17), AUTHOR: Felicity Barringer]
(http://www.nytimes.com/library/politics/camp/030700wh-media.html)

INTERNET

ICANN SAYS U.S. WILL LET IT PROSECUTE CYBERSQUATTERS, DOMAIN PROFITEERS
Issue: Internet
The U.S. government is against empowering ICANN, the organization
responsible for maintaining the Internet-address system, to prosecute
domain-name profiteers, saying instead that it would prefer ICANN, "remain a
private-sector entity that can move quickly with some agility," commented
ICANN's chief executive officer Michael Roberts. ICANN is currently trying
to help American Samoa regain ownership of its top-level domain name --
".as" in this case -- from an American Samoan who bought the domain name in
1997. Top-level domain names are the two letters given to every country as
suffixes on a Web address to identify that country on the Internet. American
Somoans are beginning to realize the commercial potential of their domain
names and are increasingly turning to ICANN for help in restoring what they
feel is their exclusive property.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Dow Jones Newswire]
(http://interactive.wsj.com/articles/SB952374963886664359.htm)

FREE-SPEECH FIGHT OVER WEBMASTER
Issue: Internet/Free-speech
Daniel Curzon-Brown, a veteran English teacher at City College of San
Francisco, is suing the Webmaster of Teacherreview.com, after postings on
the site called him "homomaniac" and "mentally ill". The site posts
anonymous critiques of instructors at the college. Curzon-Brown claims the
Webmaster, who is responsible for maintaining the site, should also be
responsible for any lies and libelous material posted online. Opponents to
the lawsuit say that a Webmaster should be granted the same immunity from
libel as an Internet service provider (ISP). Unlike newspaper publishers,
who are responsible for all material printed in their newspapers, an ISP is
not liable if a third party provided the information. "I haven't done
anything wrong," said the Webmaster, "I'm just a conduit for opinion." The
suit also names the college and its student government body for having
linked their sites to -- and implicitly endorsed -- Teacherreview.com. "This
is a very important case," said Ann Brick of the ACLU in San Francisco.
"Sites like this are the quintessential forum for expression of
opinion...The First Amendment protects comments that are both unkind and
flattering."
[SOURCE: San Jose Mercury Times Interactive, AUTHOR: Lisa Fernandez]
(http://www.mercurycenter.com/svtech/news/indepth/docs/webwar030700.htm)

ONLINE MENTAL-HEALTH THERAPY IN ITS FORMATIVE YEARS
Issue: Internet/Health
While the number of Internet mental-health services are growing rapidly,
there's still no solid evidence that good therapy can be done online,
experts say. "A lot of concern remains about doing online therapy because we
don't have the research yet to show it's safe and effective. I think what's
going on is not therapy, it's education,'' says psychologist John Grohol, an
online mental-health pioneer from Austin, Texas. According to Grohal, the
Web has an estimated 12,000 mental-health sites. A new kind of relationship
is forming here that a lot of people aren't talking about," he says. "It
remains to be seen whether this is a viable relationship in and of itself,
or if it's only an adjunct to a real-world therapist." Confidentiality is a
major concern about such services provided online.
[SOURCE: USAToday (3D), AUTHOR: Marilyn Elias]
(http://www.usatoday.com/usatonline/20000307/2004044s.htm)

PRIVACY

COMMISSION WILL WORK TO PROTECT CHILDREN AFTER LEGISLATION FAILS
Issue: Internet
The 19-member, Commission on Child Online Protection will meet for the first
time next week, over a year after it was created after First Amendment
problems scuttled two laws aimed at shielding children from online
pornography. The commission is made up of a diverse group of children's
advocates, administration officials, industry representatives and academics.
Commission member Larry Shapiro, who heads Go.com, a portal for Disney Web
sites, said of the group: "There is a call to action for a private
initiative to make things happen, and I'm hoping that we will be able to
coalesce around a position that makes sense, that provides significant
opportunity for parents to know about protective devices -- whether they are
technical or educational tools -- and that there will be an Internet
community out there that adopts these principles."
[SOURCE: Cyber Times, AUTHOR: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/capital/07capital.html)

INTELLECTUAL PROPERTY

OUTRAGE PENDING OVER NET PATENTS GRANTS SEEN AS HELPING BUSINESSES WHILE
HARMING FREE EXCHANGE OF IDEAS
Issue: Intellectual Property
The Internet community has been outraged by a recent patent that some
believe benefits commercial interests at the expense of the Web as a whole.
Last Friday it was announced that the patent office had granted Amazon.com a
patent on its affiliate program -- the arrangement through which Web sites
that link to Amazon get a cut of all the purchases that were referred from
their site. It is currently estimated that up to 20% of Web site sales come
via affiliates, says Herby Olschewski, convention chairman for
AffiliateForce.com. Tim O'Reilly, a publisher of computer books and an
activist for open source, calls patents like Amazon's a rip-off , and
believes it signals a major change in the way the Internet works. "They're
profiting from all the things that came before," he says. "The people who
are filing these patents come in as parasites."
[SOURCE: USAToday (3D), AUTHOR: Elizabeth Weise]
(http://www.usatoday.com/usatonline/20000307/2004041s.htm)

MERGERS

VERISIGN TO BUY NETWORK SOLUTIONS IN STOCK SWAP VALUED A $21 BILLION
Issue: Mergers
Internet software maker VeriSign said today that it has agreed to acquire
Web domain-name registrar Network Solutions in an all-stock transaction the
companies valued at $21 billion. The deal combines two Internet leaders:
Network Solutions provides registration services for companies and
individuals seeking Web addresses, and VeriSign is the largest provider of
data-security software that assists in electronic commerce over the
Internet. The deal is expected to close in the third quarter.
[SOURCE: Wall Street Journal Interactive, AUTHOR: Wall Street Journal Staff
Reporter]
(http://interactive.wsj.com/articles/SB952433102500587435.htm)

RADIO GIANT CLEAR CHANNEL AGREES TO SELL 72 STATIONS
Issue: Mergers
In a move designed to put to rest potential antitrust problems concerning
its pending acquisition of AMFM Inc., Clear Channel Communications will sell
off 72 radio stations in 27 markets. The company announced its plans to buy
AMFM last fall. At the time, it said that it would sell off 125 stations.
The current round of sales is subject to regulatory approval, but more sales
should be announced soon. The merger of Clear Channel and AMFM will create a
radio giant with 800 stations nationwide. Last week, Clear Channel announced
that it would buy concert promoter SFX for $2.9 billion in stock.
[SOURCE: Washington Post (E3), AUTHOR: Associated Press]
(http://www.washingtonpost.com/wp-srv/business/feed/a22918-2000mar7.htm)
SEE ALSO: CLEAR CHANNEL SELLS STATIONS TO QUELL ANTITRUST CONCERNS
[SOURCE: Wall Street Journal Interactive, AUTHOR: J.C. Conklin]
(http://interactive.wsj.com/articles/SB952350688604039684.htm)

QWEST DEAL WITH US WEST CASTS SHADOW OVER MERGER
Issue: Mergers
After stealing US West away from Global Crossing, Qwest looks like it's
going to throw it over for Deutsche Telekom [you know, the exchange student
with the motor scooter]. To add to the confusion Bell South [who has had a
major thing for Qwest since like freshman year] still has its sights set on
Qwest [but that won't work if Qwest hooks up US West first]. The US
West/Qwest deal has been gliding toward seemingly certain regulatory
approval. But what happens to US West if Qwest strikes a deal with Deutsche
Telekom [a matter of much cafeteria speculation]? "Why would they want to
get out of the deal?" asked Burgess, the US West spokesman. "Qwest has big
pipes that they have to
fill, and we've got 25 million customers."
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/business/A20979-2000Mar6.html)

WIRELESS

RACE FOR WIRELESS TAKES OFF IN EUROPE
Issue: Wireless
Initial bids totaling nearly $789 million were put forward yesterday as
companies competed in the first round of a British auction for five "third
generation", or 3G, wireless licenses. In the next 18 months, approximately
70 additional licenses will be issued in the rest of Europe. The licenses
are valuable because they would allow millions of Europeans who don't own
personal computers to access the Web via their cell phones. 3G phones could
generate $13 billion of e-commerce world-wide by 2003. "If you lose a 3G
license, you're out of the game for 10 years," says John Jensen of Chase
Manhattan Corp. The auction system could lead to inflated license prices, as
happened with the U.S. digital-wireless auctions a few years ago. Japan is
expected to be the first country in the world to offer 3G wireless services,
starting next year, followed by Finland and Britain.
[SOURCE: Wall Street Journal (A18), AUTHOR: Gautam Naik]
(http://interactive.wsj.com/articles/SB952382249379493508.htm)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), Nancy Gillis
(nancy( at )benton.org), and Harry Chauss (harry( at )benton.org) -- we welcome your
comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/3/2000

DIGITAL DIVIDE
A Governor Would Give Every Student a Laptop (NYT)
FCC Chairman Kennard Receives Award from Educators (FCC)
Federal-State Joint Board on Universal Service (FCC)

INTERNET
Report Sees Major Hurdles for Internet Election (CyberTimes)
Judge Says School May Have Overreacted to Student's Site
(CyberTimes)
Doubleclick Puts Off Its Plan For Wider Use Of Personal Data (NYT)
U.S. Unveils New Quarterly Index to Track E-Commerce (WSJ)

TELEVISION/CABLE
Reprieve for Houston TV Station (NYT)

NEWSPAPERS
In Seattle, a Novel Pact Between Two Newspapers Ignites a War (WSJ)

CONGRESS
Case, Levin Again Face Senators' Skepticism (WP)
Senate Passes Bill To Privatize Communication Satellite Network
(SJM)
Truth in Telephone Billing (House)

WIRELESS
Italy's Tascali Joins With 2 Publishers to Seek Mobile-Phone
Internet License (WSJ)

SPECTRUM
FCC is Set to Approve Rules on Airwave Band (WSJ)

DIGITAL DIVIDE

GOVERNOR WOULD GIVE EVERY STUDENT A LAPTOP
ISSUE: Digital Divide
Gov. Angus King of Maine announced a plan today to give every seventh grader
in the state a laptop with Internet service beginning the Fall of 2002. The
$65 million plan was immediately met with skepticism from members of the
Legislature. The Governor suggests that $50 million from the state's
unallocated budget surplus be put in a permanent endowment, along with $15
million in matching funds from federal and private sources, to pay for the
computers. According to Senator Mark W. Lawrence, "essentially taking a
chunk of money, setting up a foundation -- that's very different and I think
that's going to be debated in the Legislature."
[SOURCE: New York Times (A12), AUTHOR: New York Times Staff]
http://www.nytimes.com/library/national/030300maine-compute-edu.html

FCC CHAIRMAN KENNARD RECEIVES AWARD FROM EDUCATORS
Issue: Universal Service
Federal Communications Commission Chairman William Kennard accepted the 2000
Eagle Award from the United States Distance Learning Association (USLDA) for
his work in improving education and distance learning. "It is a tribute to
Chairman Kennard's vision that more than one million public, private and
parochial school classrooms have been linked to the Internet with E-Rate
funding," noted USDLA Executive Director John G. Flores. "And the program is
helping to reduce the "digital divide," with 70% of the second year funding
going to schools from the lowest income areas." "I am very happy to accept
this award. But I am even happier that because of the E- Rate we have
connected hundreds and thousands of classrooms and libraries to the
Internet. We have begun to better educate our children for the 21st
century," Chairman Kennard said. "Our challenge now is to ensure that no one
gets left behind in the Broadband Internet Age. This year we have requested
that 70% of the E-Rate funding be targeted to schools in traditionally
low-income areas. We cannot afford not to bridge the digital divide."
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0011.html)
See Also:
STUDY FINDS E-RATE IS ACHIEVING ITS GOAL OF BUILDING INTERNET FRAMEWORK FOR
21ST-CENTURY SCHOOLS
[SOURCE: Benton Foundation]
(http://www.benton.org/e-rate/pressrelease.html)

FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE
Issue: Universal Service
The Federal-State Joint Board on Universal Service will hold an open meeting
on Monday, March 6, 2000, from 4:00 to 5:00 p.m., in the Commission Meeting
Room at the Federal Communications Commission, 445 - 12th Street, SW,
Washington, DC 20554. At the meeting, the Federal-State Joint Board will
address issues related to high-cost universal service support. This meeting
will be open to the public. For further information, please contact Gene
Fullano, Accounting Policy Division, Common Carrier Bureau, at (202)
418-7400, TTY (202) 418-0484.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Common_Carrier/Public_Notices/2000/da000435.html
)

INTERNET

REPORT SEES MAJOR HURDLES FOR INTERNET ELECTION
Issue: Internet
A report released Friday says that a plan to create the Internet's first
democracy is hampered by skepticism, conflicting goals and a general lack of
accountability. The report, written by Center for Democracy and Technology,
and Common Cause, two Washington public interests groups, does not go so far
as to suggest that the Internet Corporation for Assigned Names and Numbers
(ICANN) postpone an election planned for September. ICANN's proposal would
allow any Internet user over the age of 16 who has an e-mail and postal
address to participate in the international election of a special council,
which in turn would appoint the nine board members. The main problems with
the plan are a lack of a fundamental understanding of what ICANN does among
potential voters, and a lack of controls to keep the election from being
captured by special interests. "Until these fundamental concerns are fully
addressed, this election will not be able to confer the consent of the
governed onto ICANN," the report states. Although ICANN'S primary mission
was to introduce competition into the business of registering domain names,
the last year or so has been spent on creating three so-called "supporting
organizations" of business groups that will provide the bulk of financing
for the nonprofit group. With those organizations in place, the last task of
ICANN's interim board is to create an at-large constituency and elect board
members to replace themselves. The September election's goal is to
accomplish both of these tasks.
[Source Cyber Times, Author: Jeri Clausing]
(http://www.nytimes.com/library/tech/00/03/cyber/articles/03domain.html)

JUDGE SAYS SCHOOL MAY HAVE OVERREACTED TO STUDENT'S SITE
Issue: Internet
A federal judge in Seattle has ordered a school district to temporarily
refrain from punishing a student who created an "unofficial" Web site for
his school. Chief Judge John Coughenour of the United States District Court
for the Western District of Washington concluded that the school's five-day
suspension of the student likely violated his right to free speech. Nick
Emmett, 18, a senior at Kentlake High School in Kent, Wash., created his
"Unofficial Kentlake High School Home Page" at home outside of school hours.
The site featured mock obituaries of some of Emmett's fellow students. In
the wake of the shootings in Columbine High School in Colorado, and other
schools, educators have focused attention on the students' Web sites as
early indicators of threats. Coughenour's opinion acknowledges the fear felt
by educators. The judge's opinion states that the school district "argues,
persuasively, that school administrators are in an acutely difficult
position after recent school shootings in Colorado, Oregon and other
places." But, Coughenour found that the school district had not sufficiently
demonstrated that the mock obituaries "were intended to threaten anyone, did
actually threaten anyone, or manifested any violent tendencies whatsoever."
[Source Cyber Times, Author: Carl S. Kaplan]
(http://www.nytimes.com/library/tech/00/03/cyber/cyberlaw/03law.html)

US UNVEILS NEW QUARTERLY INDEX TO TRACK E-COMMERCE
Issue: E-Commerce
The Commerce Department unveiled a new index meant to track e-commerce
separately from overall retail-sales figures. "This number is the new
benchmark - our first government economic indicator for the e-economy," said
Commerce Secretary William Daley. The index measures only products and
excludes service sites such as online brokerage and travel sites. Since
airline tickets are widely estimated to be the most popular product sold
online, their exclusion from the index mans that it will be a fairly
conservative measure of the total amount of money spent on the web. Other
economists point out that there will be a limited usefulness to the index.
"Measuring e-commerce is like measuring 'phone-commerce' in 1880 when that
technology was in its infancy. The phone quickly became part and parcel of
the broader economy, making it harder to keep it separate, and this may,
too." said Brad DeLong from University of California at Berkeley.
[SOURCE: Wall Street Journal (A2), AUTHOR: Yochi Dreazen]
(http://interactive.wsj.com/articles/SB95201048539755660.htm)

DOUBLECLICK PUTS OFF ITS PLAN FOR WIDER USE OF PERSONAL DATA
Issue: Privacy
As a result of enormous pressure from privacy advocates and Wall Street,
DoubleClick has announced that it would hold off on its plan to link
personal information to anonymous data it collects about consumers on the
Internet. "I made a big mistake," said Kevin O'Connor, DoubleClick's chief
executive. "It was wrong to try to match that information in the absence of
government or industry standards, so until there's agreement on it, we will
not." DoubleClick had plans to take information from Abacus Direct, which
compiles offline information on the buying habits of millions of consumers,
and combine it with data it already gathers about online consumers. By
combining the online and offline, the company could provide advertisers with
consumers' identities and detailed personal information that would tie an
individual to his or her Internet use and buying habits.
[SOURCE: Cyber Times AUTHOR:Bob Tedeschi]
(http://www.nytimes.com/library/financial/columns/030300doubleclick-adcol.ht
ml)
SEE ALSO:
DOUBLECLICK REVERSES COURSE AFTER PRIVACY OUTCRY
[Wall Street Journal (B1), AUTHOR: Andrea Petersen]
(http://interactive.wsj.com/articles/SB952019045241548818.htm)
DOUBLECLICK DROPS USER PROFILING
Issue: Privacy
The Internet's largest advertising network announced
(http://www.doubleclick.net/company_info/press_kit/pr.00.03.02.htm) that it
had made a "mistake by planning to merge names with anonymous user activity
across Web sites in the absence of government and industry privacy
standards." See also EPIC's DoubleTrouble page, Junkbusters' page on
Doubleclick/Abacus merger, Richard Smith page on online advertising, and
EPIC testimony on Internet Privacy and Doubleclick.
[SOURCE: Electronic Privacy Information Center]
(http://www.epic.org/)

TELEVISION/CABLE

REPRIEVE FOR HOUSTON TV STATION
Issue: Television/Cable
Lee P. Brown, the Mayor of Houston, stepped in to prevent a scheduled shut
down of the ABC television station yesterday by brokering an agreement
between ABC and Time Warner's cable unit to extend their contract in Houston
for seven days. The two companies have been locked in a bitter dispute over
the transmission rights to the station. The ABC station, which is owned by
Disney, has demanded that Time Warner's cable system pay a fee of 70 cents a
subscriber for the Disney Channel, and begin carrying two other Disney-owned
channels, the Soap Opera Channel and Toon Disney. Time Warner executives
have accused ABC and its parent, the Walt Disney Company, of trying to
extort an agreement that would cost Time Warner $100 million. ABC had
planned to terminate the transmission rights in Houston as of last night at
midnight, which would have removed the ABC station from the homes of nearly
650,000 cable subscribers.
[SOURCE: New York Times (Online), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/houston-tv-abc.html)

NEWSPAPERS

IN SEATTLE, A NOVEL PACT BETWEEN TWO NEWSPAPERS IGNITES A WAR
Issue: Newspapers
A fierce newspaper battle is brewing in Seattle as the Seattle Times
prepares to publish in the morning instead of the afternoon, going
head-to-head with the Seattle Post-Intelligencer. "It will be a grand
experiment, an old-fashioned content battle," said Frank Blethn, publisher
of the Seattle Times. What's surprising is that both newspapers are party to
a 17 year joint operating agreement in which they share printing plants and
delivery trucks but maintain separate newsrooms. In February 1999, the
joint operating agreement was renegotiated and the decision made to publish
both papers in the morning. Some believe that this means the Seattle
Post-Intelligencer is preparing to eventually shut down. As part of the
agreement, if either publication posts losses for three straight years, its
owner can shut it down and still keep 32% of the profits earned by the other
until 2083. "We assumed we were being sold down the river," said
Post-Intelligencer reporter Jane Hadley.
[SOURCE: Wall Street Journal (B1), AUTHOR: Rachel Zimmerman and Matthew
Rose]
(http://interactive.wsj.com/articles/SB952029107673531268.htm)

CONGRESS

SENATE PASSES BILL TO PRIVATIZE COMMUNICATION SATELLITE NETWORK
Issue: Satellite
The Senate passed legislation that will privatize the world communications
satellite network, Comsat. The measure, which will allow telephone
companies to bypass Comsat to get direct access to the global satellite
consortium Intelsat, could potentially result in lower long-distance calling
rates. Comsat was chartered by Congress in 1962 to keep then-telephone
monopoly AT&T from extending its control to international satellite
communications. The privatization of Comsat was necessary for Lockheed
Martin to complete its proposed deal with Comsat. The defense contractor has
already purchased 49 percent of Comsat, but could not acquire the rest of
the company because of current Comsat ownership limits that were written
into the 1962 law.
[SOURCE: San Jose Mercury News, AUTHOR: Associated Press]
(http://www.mercurycenter.com/svtech/news/breaking/merc/docs/005787.htm)

CASE, LEVIN AGAIN FACE SENATORS' SKEPTICISM
Issue: Mergers
The Senate Commerce Committee quizzed America Online Inc. chief Steve Case
and his Time Warner Inc. counterpart, Gerald Levin, about the promise and
potential pitfalls of their pending marriage yesterday. The two-hour public
meeting, during which AOL's competitive tactics were compared wit those of
Microsoft Corp., followed a similar one held Tuesday by the Senate Judiciary
Committee. The senators again attempted to pin down answers to questions on
sundry topics ranging from consumer privacy to "open access," allowing AOL'
competitors access to Time Warner's cable-TV lines. Since Internet giant AOL
announced on Jan. 10 that it would acquire media powerhouse Time Warner,
legislators and consumer groups alike have expressed worry that the
concentration of power in this unprecedented hybrid company would have
negative effects on a number of realms.
[Source Washington Post (E2) Author: Ariana Eunjung Cha]
(http://www.washingtonpost.com/wp-dyn/articles/A61985-2000Mar2.html)

TRUTH IN TELEPHONE BILLING
Issue: Telephone Regulation
Thursday, March 9, 2000 10:00 a.m. in 2322 Rayburn House Office Building
subcommittee on Telecommunications, Trade, and Consumer Protection hearing
on H.R. 3011, the Truth in Telephone Billing Act of 1999 and H.R. 3022, the
Rest of the Truth in Telephone Billing Act of 1999.
[SOURCE: House of Representatives]
(http://com-notes.house.gov/schedule.htm)

WIRELESS

ITALY'S TISCALI JOINS WITH 2 PUBLISHERS TO SEEK MOBILE-PHONE INTERNET
LICENSE
Issue: Wireless
Tiscali, an Italian Internet and telecommunications company, has allied
itself with the publishers of the two biggest Italian newspapers in an
attempt to get a license to provide Web surfing on mobile phones. Italy is
offering five licenses to provide next-generation Universal Mobile
Telecommunications System (UMTS) services this year. Four of those licenses
are expected to go to existing mobile phone networks, making the battle for
the fifth license bitter. More than half of the Italian population owns a
mobile phone. The government plans to award the permits by August.
[SOURCE: Wall Street Journal (A16), AUTHOR: Yaroslav Trofimov]
(http://interactive.wsj.com/articles/SB95203690182629113.htm)

SPECTRUM

FCC IS SET TO APPROVE RULES ON AIRWAVE BAND
Issue: Spectrum
The Federal Communications Commission is expected to vote as early as Monday
on rules that would save 6 megahertz of the available 36 megahertz spectrum
for two-way radio use. The 6 megahertz spectrum is designated as "guard
bands" to prevent interference with police, fire department and other public
safety frequencies. The FCC is expected to back away from an original staff
proposal to use the 6 megahertz spectrum for private-radio networks, which
have shown to have little interference with public-safety networks.
Instead, it is likely to open the spectrum to "band managers" who could
lease slices for private or commercial use, except cellular-phone services.
With passing these rules, the FCC is effectively guaranteeing that much of
the 6 megahertz spectrum would go to private two-way radio use instead of to
high-tech bidders from wireless carriers. "If the FCC has chosen to write
rules that ensure a giveaway of valuable spectrum rather than allow an open
auctions where new wireless broadband technologies could bid, that's a
tragedy," says Mike Farmwald, the founder of FreeSpace, a wireless company.
[SOURCE: Wall Street Journal (B4), AUTHOR: Kathy Chen]
(http://interactive.wsj.com/articles/SB952049976476959536.htm)

--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html)

Communications-related Headline Service is posted Monday through Friday. The
Headlines are highlights of news articles summarized by staff at the Benton
Foundation. They describe articles of interest to the work of the Foundation
-- primarily those covering long term trends and developments in
communications, technology, journalism, public service media, regulation and
philanthropy. While the summaries are factually accurate, their often
informal tone does not represent the tone of the original articles.
Headlines are compiled by Kevin Taglang (kevint( at )benton.org), Rachel Anderson
(rachel( at )benton.org), Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis
(nancy( at )benton.org) -- we welcome your comments.

The Benton Foundation works to realize the social benefits made possible
by the public interest use of communications. Bridging the worlds of
philanthropy, public policy, and community action, Benton seeks to shape
the emerging communications environment and to demonstrate the value of
communications for solving social problems. Through demonstration
projects, media production and publishing, research, conferences, and
grantmaking, Benton probes relationships between the public, corporate,
and nonprofit sectors to address the critical questions for democracy in
the information age. Other projects at Benton include:
Connect for Kids (www.connectforkids.org)
Open Studio: The Arts Onlinwww.openstudio.org)
Destination Democracy (www.destinationdemocracy.org/)
Sound Partners for Community Health (www.soundpartners.org/)

Communications-related Headlines for 3/2/2000

INTERNET
Europe Plans to Collect Tax on Some Internet Transactions (NYT)
Market Research on the Web Has Its Drawbacks (WSJ)
New Generation of Farmers in Argentina Plug into Internet, Reshape
the Business (WSJ)

TELEVISION
TV Networks Are Cluttering Shows With A Record Number Of Commercials
(WSJ)
Upfront Market For Kids' Programs Softens (WSJ)
ABC's TV Station in Houston Set to Go Dark in Cable Dispute (NYT)

TELEPHONY
Deceptive Advertising of Long Distance Telephone Services (FCC)

WIRELESS
SBC, BellSouth Discuss Joint Wireless Network (WP)
McCaw To Fuse Satellite-Phones Systems and Teledesic (WSJ)
AT&T's High Wireless Act: Can It Deliver the Web and a Dial Tone?
(WSJ)

MERGERS
Telecom Italia Puts Off Internet Merger (WSJ)
NBC Purchases a Minority Stake in Digital Entertainment Network
(WSJ)

INTERNET

EUROPE PLANS TO COLLECT TAX ON SOME INTERNET TRANSACTIONS
Issue: Internet
The European Commission is planning to collect sales taxes on music and
software purchased on the Internet, testing the ability to enforce national
tax laws in cyberspace. Proposals developed by the European Commission in
Brussels would have companies collect what is known as a value-added tax, a
type of sales tax, on products they sell and distribute over the Internet.
Value-added taxes -- whose rates vary by country from about 12 percent to
more than 20 percent -- are a major source of revenue for most European
governments. The taxes are currently collected by stores, mail-order
companies, or by customs officials when the products were to be shipped
across national boundaries. Under the proposals that are being debated in
Brussels, products sold on the Web would be taxed based on the rate in the
customer's country, meaning that companies operating in the United States
would have to collect the taxes on all sales to European customers. American
companies warn that efforts to extend the existing tax system would prove
extremely complicated and unenforceable. "This is an area that is still
developing, and Europeans should not rush in to develop a solution right
away," said Howard Liebman, a lawyer who heads up a working group on tax
issues at the American Chamber of Commerce in Belgium.
[SOURCE: New York Times (C4), AUTHOR: Edmund L. Andrews]
(http://www.nytimes.com/library/tech/00/03/biztech/articles/02tax.html)

MARKET RESEARCH ON THE WEB HAS ITS DRAWBACKS
Issue: Internet
Companies are still wary of depending entirely on online market research.
The people on the Internet still tend to be male, whiter, richer, and more
technically savvy than the general populace. And while market-research
firms assure their clients that they weight the data to make up for these
discrepancies, companies are still uncertain. Focus groups are difficult to
conduct over the Internet since researches aren't able to watch for
important nonverbal signs such as sneering, grinning or chuckling. But one
advantage of online market research is the ability to access a narrow niche
of respondents quickly and easily. So, while online market research is
growing, it's expected to total $1 Billion by 2002, companies are continuing
with real-world research. "There are some traditional techniques that just
cannot be replaced," said Brent Seymour, AltaVista's director of market
intelligence
[SOURCE: Wall Street Journal (B4), AUTHOR: Erin White]
(http://interactive.wsj.com/articles/SB951952695752354154.htm)

NEW GENERATION OF FARMERS IN ARGENTINA PLUG INTO INTERNET, RESHAPE THE
BUSINESS
Issue: Internet
Internet sites are expected to bring huge changes to the $14 billion
agricultural industry in Argentina. Even though only 10% of Argentina's
farmers have Internet access, the number is expected to double as Internet
access prices tumble. While farmers use the Internet to access weather
updates, crop prices, and plague alerts, the real attraction is in the big
savings to be had in purchasing fertilizers, seeds and pesticides. Volume
discounts of 5% to 15% from big suppliers as Monsanto, Novartis and Dow
Agresciences are available. The savings are essential since Argentina's
farmers are burdened with high taxes and freight costs yet they do not
receive subsidies.
[SOURCE: Wall Street Journal (A12), AUTHOR: Craig Torres]
http://interactive.wsj.com/articles/SB951956120726955710.htm

TELEVISION

TV NETWORKS ARE CLUTTERING SHOWS WITH A RECORD NUMBER OF COMMERCIALS
Issue: Television/Advertising
The television networks are jamming a record number of commercials onto
their shows, according to a new report from the American Association of
Advertising Agencies and the Association of National Advertisers. The study,
which analyzed one week of broadcasts during May and another in November of
last year found that ABC led with the most clutter -- commercials,
public-service announcements and network promotions -- during prime-time
television broadcasts. The network averaged nearly 17 minutes of clutter
each hour during prime time. The four major networks were found to average
16 minutes and 43 seconds of clutter, an increase of about one minute over
the year before. "If the television industry doesn't recognize soon that
they are killing the golden goose, they will lose the battle for the
attention of consumers to their content and the attention of their
advertisers as the major advertising vehicle," warns Jon Mandel, co-managing
director of MediaCom, a unit of Grey Advertising Inc. ABC criticized the
accuracy of the study. "You can't draw a conclusion based on two weeks of
the year,'' said Alex Wallau.
[SOURCE: Wall Street Journal (B18), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB951953527340678652.htm)

UPFRONT MARKET FOR KIDS' PROGRAMS SOFTENS
Issue: Television
Too many networks going after children, combined with reduced spending by
key advertisers, has most industry observers anticipating a soft market for
children's programming. "The supply exceeds the demand," says Shelly Hirsch,
CEO of Summit Media, an ad-buying firm that represents 15 video and toy
companies. Besides Nickelodeon and Time Warner's Cartoon Network, Walt
Disney's ABC, the WB Network, Fox and the Fox Family Channel are all
competing for a piece of the $1 billion advertisers spend annually on
television to reach kids. The kids market has recently been effected by
difficulties in the toy and cereal industries. As a result, networks are
increasing trying to convince advertisers that kids have influence beyond
what breakfast cereal is bought in their house.
[SOURCE: Wall Street Journal (B18), AUTHOR: Joe Flint]
(http://interactive.wsj.com/articles/SB951954535714645654.htm)

ABC'S TV STATION IN HOUSTON SET TO GO DARK IN CABLE DISPUTE
Issue: Television/Cable
Cable viewers in Houston are caught an increasingly bitter dispute between
Time Warner and the Walt Disney Company. The ABC television station in
Houston is scheduled to go dark early tomorrow morning in more than 650,000
homes served by the Time Warner cable system. Disney, ABC's parent, has
asked Time Warner to change its Disney Channel from a premium or pay cable
channel to a basic channel and to pay it 71 cents or every subscriber to its
cable systems, a relatively high figure. The outcome in Houston, which could
have effects in other places, will be closely watched for what it could mean
for future negotiations between broadcasters and cable operators as the
networks begin to use the growth of satellite television service as
leverage. Mike Luftman, the vice president for communications for Time
Warner Cable, labeled the Disney position "an extortion demand" and likened
Disney's tactics in choosing Houston as the city to fight out the dispute to
"terrorists taking hostages and then taking one out and shooting him in the
head."
[SOURCE: New York Times (), AUTHOR: Bill Carter]
(http://www.nytimes.com/yr/mo/day/news/financial/abc-cable.html)

TELEPHONY

DECEPTIVE ADVERTISING OF LONG DISTANCE TELEPHONE SERVICES
Issue: Telephone Reg/Adveritising
The Federal Communications Commission (FCC) and the Federal Trade
Commission(FTC) issued a joint Policy Statement to protect consumers from
unfair and deceptive advertising and marketing of long distance services,
including dial-around services -- often called "10-10" numbers. The Policy
Statement offers guidance to carriers to ensure their advertising is
truthful, complete and non- misleading. Additionally, it describes the kind
of factors the FCC will consider in determining whether to bring enforcement
action against carriers for deceptive advertising practices.
[SOURCE: FCC]
(http://www.fcc.gov/Bureaus/Miscellaneous/News_Releases/2000/nrmc0009.html)

WIRELESS

AT&T'S HIGH WIRELESS ACT: CAN IT DELIVER THE WEB AND A DIAL TONE?
Issue: Wireless
AT&T's plan to use its digital wireless network to bring consumers local
phone service was hailed at its unveiling three years ago as "the
communications medium of the 21st century." But the plan is proving to be
more complex than originally thought. So far the service is only being used
by around 200 test households in suburban Dallas, none of whom are paying
for it. As with any new technology, there are certain details to be worked
out. One tester reported receiving a local radio station over his telephone.
There is also a fair amount of new equipment required for the service.
Consumers must have an antenna installed on the side of their houses to use
the service and those using it for Internet access, must install a special
card in their computers. Another problem is the two-hours it takes to
install the equipment Some testers seem to like the service so far,
particularly the speed. "It's faster," says 38-year-old tester, Paige Hafner
"It makes me want to use the Web more."
[SOURCE: Wall Street Journal (B1), AUTHOR: Nicole Harris]
http://interactive.wsj.com/articles/SB951953423635428968.htm

SBC, BELLSOUTH DISCUSS JOINT WIRELESS NETWORK
Issue: Mergers
SBC Communications, the largest of the nation's regional phone companies, is
talks to merge its wireless services business with BellSouth. The talks are
focusing on creating a joint network that would cover 40 of the 50 largest
U.S. cities, potentially putting telephone and Internet services into the
hands of 177 million people. Carriers have long sought to expand their
networks so that they might bring customers nationwide service without
roaming charges. The addition of wireless Internet connections makes the
expansion of networks even more of a priority, because data transmissions
are more complex than voice. "They need to make sure they have seamless
networks," said Mark Lowenstein, an analyst with the Yankee Group in Boston.
"The more you move across different networks, it really throws things off."
While SBC and BellSouth have extensive traditional telephone businesses,
neither has anything like a national wireless presence. The continued growth
of the wireless market provides strong motivation for companies to expand
their wireless offerings.
[SOURCE: Washington Post (E1), AUTHOR: Peter S. Goodman]
(http://www.washingtonpost.com/wp-dyn/articles/A58775-2000Mar2.html)

MCCAW TO FUSE SATELLITE-PHONES SYSTEMS AND TELEDESIC
Issue:
Craig McCaw plans to combine the ICO and Iridium satellite-phone systems
with his own proposed Teledesic project to create a global voice-and-data
network. In documents filed in the bankruptcy-court proceedings of ICO
Global Communications and Iridium, McCaw outlined his plan. Basically, Mr.
McCaw wants to acquire the two systems for pennies on the dollar, then knit
them into a satellite network that would provide telephone service, and
high-speed Internet access. McCaw would lead a $1.7 billion bailout of ICO,
a company valued at $4.7 billion. He is also proposing to invest about $600
million to take control of the $5 billion Iridium system. For his money he
would get Iridium's 66 satellites, its customer base of 50,000 users and its
well-regarded billing system. ICO's assets include 12 satellites in orbit
and the beginnings of a $900 million fiber-optic network to link its ground
stations. Tim O'Neil, a Wit Soundview analyst compared the ICO and Iridium
rescue packages to Mr. McCaw's 1995 takeover of then-struggling Nextel
Communications, whose unusual cell phones double as two-way radios. Under
Mr. McCaw's guidance, Nextel's subscriber base has grown enormously, along
with its stock-market value.
[SOURCE: Wall Street Journal (B8), AUTHOR: Scott Thurm]
http://interactive.wsj.com/articles/SB951952823587957495.htm

MERGERS

TELECOM ITALIA PUTS OFF INTERNET MERGER
Issue: Mergers
Telecom Italia put off the merger of its Internet unit with Seat Pagine
Gialle, owner of Italy's biggest portal, because of a rise in the price of
Seat PG shares. As part of the merger terms, Telecom Italia agreed to bid
for all of Seat PG's shares once the merger went through. What it wants to
avoid is having to bid for all the shares at the current higher prices. The
merger with publicly traded Seat PG was going to allow Telecom Italia to
list its Internet operations on the stock market without having to go
through an expensive IPO. The costs associated with bidding for all Seat PG
shares based on current market prices would defeat this purpose. The two
companies are awaiting a ruling from the nation's securities commission and
will convene board meetings on March 15 to discuss the merger's conditions.
[SOURCE: Wall Street Journal (A21), AUTHOR: Yaroslav Trofimov]
http://interactive.wsj.com/articles/SB951942166330559328.htm

NBC PURCHASES A MINORITY STAKE IN DIGITAL ENTERTAINMENT NETWORK
Issue: Merger
NBC bought a minority stake in Digital Entertainment Network Inc., a company
that beams television-like entertainment over the Web. DEN (www.den.net) had
been touted as a leader in the move to bring compelling video entertainment
to the Internet, but it's been hurt by a run of bad publicity of late. DEN
broadcasts edgy episodic entertainment aimed at people in their teens and
early 20s.
[SOURCE: Wall Street Journal Interactive, AUTHOR: News Roundup]
(http://interactive.wsj.com/articles/SB951942262306124568.htm)
--------------------------------------------------------------

(c)Benton Foundation 2000. Redistribution of this email publication -- both
internally and externally -- is encouraged if it includes this message.

--------------------------------------------------------------

The Benton Foundation's Communications Policy and Practice (CPP)
(www.benton.org/cpphome.html) Communications-related Headline
Service is posted Monday through Friday. The Headlines are highlights
of news articles summarized by staff at the Benton Foundation. They
describe articles of interest to the work of the Foundation -- primarily
those covering long term trends and developments in communications,
technology, journalism, public service media, regulation and philanthropy.
While the summaries are factually accurate, their often informal tone does
not represent the tone of the original articles. Headlines are compiled by
Kevin Taglang (kevint( at )benton.org), Rachel Anderson (rachel( at )benton.org),
Jamal Le Blanc (jamal( at )benton.org), and Nancy Gillis (nancy( at )benton.org) -- we
welcome your comments.